BeijingShougangCompanyLimited

2024AnnualReport

16April2025

2024AnnualReport

SECTIONI.IMPORTANTNOTICE,CONTENT,DEFINITIONS

TheBoardofDirectors(the“Board”),thesupervisorycommittee,alldirectors,supervisors,andseniorexecutivesoftheCompanywarrantthattherearenofalserepresentations,misleadingstatements,ormaterialomissionsinthisannualreport;andarejointlyandindividuallyresponsibleforthetruthfulness,accuracyandcompletenessoftheinformationcontainedinthisannualreport.

ChairmanQiuYinfu,GeneralManagerSunMaolin,ChiefAccountantLiuTonghe,andAccountingOfficerCuiXiumeideclarethattheyguaranteetheauthenticity,accuracy,andcompletenessofthefinancialreportsinthisyear'sreport.

CertainrisksthatmayexisthavebeenelaboratedbytheCompanyinthisreport.PleaserefertoDiscussionandAnalysisofBusinessOperationsfordetails.

Theprofitdistributionplanapprovedbytheboardofdirectorsisasfollows:

basedon7,773,981,020,cashdividendsofRMB0.22(includingtax)willbedistributedtoallshareholdersforevery10shares,and0bonusshares(includingtax)willbeissuedandthereisnoconversionofreserveintosharecapital.

CONTENTS

SECTIONI.IMPORTANTNOTICE,CONTENT,DEFINITIONS........................................................................................

SECTIONII.COMPANYPROFILEANDMAJORFINANCIALINDICATORS....................................................................

SECTIONIII.DISCUSSIONANDANALYSISOFBUSINESSOPERATIONS......................................................................

SECTIONIV.CORPORATEGOVERNANCE..................................................................................................................

SECTIONV.ENVIRONMENTANDSOCIALRESPONSIBILITY......................................................................................

SECTIONVI.SIGNIFICANTEVENTS............................................................................................................................

SECTIONVII.MOVEMENTSINSHARECAPITALANDSHAREHOLDERS....................................................................

SECTIONVIII.PREFERREDSHARES............................................................................................................................

SECTIONIX.BONDS....................................................................................................................................................

SECTIONX.FINANCIALREPORT.................................................................................................................................

Filedirectoryforreference

1.AccountingstatementssignedandstampedbytheChairman,GeneralManager,ChiefAccountant,andHeadoftheAccountingInstitution.

2.Originalauditreportwiththesealoftheaccountingfirm,signature,andsealoftheCPA.

3.OriginalcopiesofallcompanydocumentsandannouncementspubliclydisclosedinnewspapersdesignatedbytheChinaSecuritiesRegulatoryCommissionduringthereportingperiod.

4.“TheArticlesofAssociationofBeijingShougangCompanyLimited”,etc.

Interpretation

Items

SECTIONII.COMPANYPROFILEANDMAJORFINANCIALINDICATORSI.Companyinformation

Shortnameofstock

II.Contactinformation

III.Informationdisclosureandplaceforinspection

IV.Changesofregistration

V.Otherrelevantinformation

AccountingfirmengagedbytheCompany

SponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinthereportingperiod

□Applicable√Non-applicableFinancialconsultantengagedbytheCompanytoperformcontinuoussupervisiondutiesinthereportingperiod

□Applicable√Non-applicableVI.Majoraccountingdataandfinancialindicators

WhethertheCompanyhasretroactiveadjustmentorre-statementonpreviousaccountingdataornot

□YES√NO

2024

TheCompany’snetprofitbeforeandafterdeductingnon-recurringprofitandlossinthelastthreefiscalyearsisnegative,andtheauditedprofitofthelastyearpresentsthattheCompany’sabilitytocontinueoperationsisuncertain.

□YES√NOThenetprofitbeforeandafterdeductingnon-recurringprofitandlossisnegative.

□YES√NOVII.DifferenceofaccountingdataunderaccountingrulesinandoutofChina

1.DifferencesofnetprofitandnetassetsinfinancialstatementsdisclosedaccordingtoInternationalFinancialReportingStandardsandChineseAccountingStandards

□Applicable√Non-applicableThereisnodifferencebetweenthenetprofitandnetassetsinthefinancialstatementsdisclosedinaccordancewithInternationalFinancialReportingStandardsandChineseAccountingStandardsduringthereportingperiodoftheCompany.

2.DifferencebetweennetprofitandnetassetsinfinancialstatementsdisclosedaccordingtoforeignaccountingstandardsandChineseAccountingStandards

□Applicable√Non-applicableThereisnodifferencebetweenthenetprofitandnetassetsinthefinancialstatementsdisclosedinaccordancewithforeignaccountingstandardsandChineseAccountingStandardsduringthereportingperiodoftheCompany.VIII.Majorfinancialindicatorsbyquarterin2024

Unit:RMBYuan

Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindicatorsorthesumandtherelevantfinancialindicatorsdisclosedintheCompany’squarterlyreportandsemi-annualreport

□YES√NOIX.Itemsandamountsofnon-recurringprofitandloss

√Applicable□Non-applicable

Unit:RMBYuan

Item

Particularsaboutotheritemsthatmeetthedefinitionofexceptionalgain/loss:

□Applicable√Non-applicableDuringthereportingperiod,thereisnootheritemthatmeetsthedefinitionofexceptionalgain/loss.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:

□Applicable√Non-applicableDuringthereportingperiod,thereisnonon-recurringprofitandlossitemdefinedandlistedin"ExplanatoryAnnouncementNo.1ofInformationDisclosureofCompaniesofferingsecuritiestothepublicnon-recurringprofitandloss"asrecurringprofitandlossitems.

SECTIONIII.DISCUSSIONANDANALYSISOFBUSINESSOPERATIONS

I.TheindustrysituationoftheCompanyduringthereportingperiodIn2024,China'seconomygenerallyoperatedsteadilyandimproved,andtheannualGDPgrowthwas5%,accomplishingtheeconomicgrowthworktargetatthebeginningoftheyear.ThedomesticironandsteelindustryhaseffectivelymetthehigherdemandformaterialsinChina'seconomictransformationandupgrading,andthehigh-qualitydevelopmenthasbeenpromotedinanorderlymanner,butthecontradictionbetweensupplyanddemandstillexist,andtheindustryasawholeshowsthecharacteristicsof“supplyremainshigh,demandstructuraladjustment,stronggrowthinexports,pricescontinuetodecline,andthebenefitscontinuetobesqueezed”.AccordingtothedataissuedbytheChinaSteelAssociation,thekeystatisticalenterprisesoftheChinaSteelAssociationrealizedatotalprofitofRMB42.9billionin2024,ayear-on-yeardecreaseof50.3%;theaveragesalesprofitrateof0.71%,ayear-on-yeardecreaseof0.63percentagepoints.Intermsofproductoutput,domesticcrudesteeloutputdeclinedyear-on-year,andtheproductstructurecontinuedtobeadjusted.AccordingtodatafromtheNationalBureauofStatistics,China'scrudesteeloutputin2024was1.005billiontons,adecreaseof1.7%year-on-year,whilesteeloutputwas1.400billiontons,anincreaseof1.1%year-on-year.Thestructuraladjustmentofsteelproductsisstillcontinuing,accordingtothestatisticsoftheChinaSteelAssociation,theproportionofsteelusedintheconstructionindustrydecreasedto50%,andtheproportionofsteelusedinthemanufacturingindustryincreasedfrom42%in2020to50%in2024.

Intermsofproductprices,steelpricesdeclinedyear-on-yearthroughouttheyear.AccordingtodatafromtheChinaSteelAssociation,theaveragevalueofChinaSteelPriceIndex(CSPI)in2024was102.47points,ayear-on-yeardecreaseof8.39%.Amongthem,theaveragevalueofthelongmaterialindexis105.22points,ayear-on-yeardecreaseof8.83%;Theaveragevalueoftheboardindexwas100.58points,ayear-on-yeardecreaseof10.09%.Ontheupstreamside,rawfuelcostsfluctuatedownward,andthedeclineinrawfuelpriceswaslessthanthedeclineinsteelprices.AccordingtothestatisticsoftheChinaSteelAssociation,Chinaimported1.237billiontonsofironorein2024,anincreaseof4.9%year-on-year,andtheaveragepriceofimportswasUSD

106.93perton,ayear-on-yeardecreaseof7.08%.Theprocurementcostsofcokingcoal,metallurgicalcoke,andscrapsteelofkeystatisticalenterprisesoftheChinaSteelAssociationdecreasedby8.14%,11.28%,and

8.68%year-on-year,respectively.

Downstream,steelconsumptionstructurefurtherdifferentiation,showing“industrialstrong,constructionweakness”pattern,newenergyvehicles,shipbuilding,advancedmachinery,andotherhigh-endmanufacturingindustrieshavebecomethemaingrowthpointofsteeldemand,realestateandothertraditionalfieldscontinuetodecline.Amongthem,thegreenlow-carbondrivennewenergyindustrysteeldemandshowedrapidgrowthin2024,thenewenergyvehicleproductioncompleted12,888,000,anincreaseof34.4%year-on-year;Theshipbuildingindustrymaintainsagooddevelopmentmomentum,withChina'sshipbuildingcompletionvolumeincreasingby13.8%year-on-yearin2024,andthevolumeofnewordersincreasingby58.8%year-on-year;Thehomeapplianceindustrymaintainedstablegrowthunderthedrivingfactorsofpolicyincentives,consumptionupgrading,andexportgrowth,withtheannualcumulativeoutputofairconditioners,refrigerators,washingmachinesandcolorTVsincreasingby9.7%,8.3%,8.8%and4.6%year-on-yearrespectively.

Intermsofimportsandexports,steelexportsrosesharplyin2024,whileimportsareexpectedtomaintainadownwardtrend,exportsshoweda“volumeupandpricedown”trend.Accordingtothestatistics

oftheChinaSteelAssociation,Chinaimported1.237billiontonsofironorein2024,anincreaseof22.7%year-on-year,andtheaveragepriceofimportswasUSD755perton,ayear-on-yeardecreaseof19.3%.Cumulativesteelimportswere6.815milliontons,adecreaseof10.9%year-on-year.

Overall,thesupportingconditionsandbasictrendsforthelong-termimprovementofChina'seconomyhavenotchanged,andthemacroeconomyismovingtowardsanewstageofdevelopmentdrivenbyinnovationandcharacterizedbythegrowthofnew-qualityproductiveforces.2024isacriticalyearforthesteelindustry'sdeepadjustment,butstructuraldevelopmentopportunitiesforhigh-qualitycompaniesstillexist.Firstofall,theindustrysupplyanddemandpatternisexpectedtoimproveinthelongterm,theNDRCputforward“2025continuedimplementationofcrudesteelproductioncontrol,promotethesteelindustrytoreducetheamountofreorganization,”theironandsteelindustrywillenterthestockoptimization,volumereduction,anddevelopmentstage,thecontradictionbetweensupplyanddemandisexpectedtobeeased;Secondly,low-carbontransformationwillbringnewopportunitiesforthedevelopmentoftheindustry.InMay2024,theNDRC,MIIT,andotherfivedepartmentsjointlyissuedthe“SpecialActionPlanforEnergyConservationandCarbonReductionintheIronandSteelIndustry”,andinMarch2025,theMinistryofEcologyandEnvironmentissuedthe“NationalCarbonEmissionTradingMarketCoverageoftheIronandSteel,Cement,andAluminumSmeltingIndustries”,andtheironandsteelindustrywasincludedinthemanagementofthecarbonemissiontradingmarket,whichhasputforwardhigherrequirementsfortheindustry'sgreentransformationandupgrading;Finally,topromoteconsumptionupgradingandimprovetheimplementationofconsumerqualitypolicies,willbenewindustriessuchasnewenergyvehicles,high-endmanufacturing,humanoidrobotswillbringnewhigh-endsteeldemand,scienceandtechnologyinnovationofthe“keyvariables”isexpectedtobecometheindustrytopromotethehigh-qualitydevelopmentofthe“largestincrement”.

II.MainbusinessoftheCompanyduringthereportingperiod

TheCompanyisfirmlyadheringtothestrategicdeterminationof"greenmanufacturing,intelligentmanufacturing,boutiquemanufacturing,leanmanufacturing,andprecisionservices",adherestoinnovation-driven,andpromotestechnologicalinnovationtobecomethecompany'sfirstcompetitiveadvantage.Adheretocreate“manufacturing+service”competitiveadvantage,continuouslyoptimizingproductstructure,productionlinestructure,andcustomerstructure,andcontinuouslypromotinghigh-endproductresearchanddevelopmentwithafocusonelectricalsteel,automotivepanels,andtin-plated(chromium-plated)plates.TheCompanyhastransformedfromahigh-qualitybarandwireproductionenterprisewithaproductioncapacityof4milliontonsintheearlystageoflistingtoatechnology-leading,green,andlow-carbontechnologycompanywithahigh-endplateproductioncapacityof21.7milliontons.

ThemainbusinessoftheCompanyistheproductionandsalesofsteelproductsandmetalsoftmagneticmaterials(electricalsteel).

1.ZhixinCo.

ZhixinCo.isaresearchanddevelopment,manufacturing,andsalesbaseformetalsoftmagneticmaterials(electricalsteel),andisaleadingglobalmanufacturerandserviceproviderofelectricalsteel.

Theproductsincludetwomajorseries:orientedelectricalsteelandnon-orientedelectricalsteel.Amongthem,orientedelectricalsteelincludessixcategoriesofproducts:highmagneticinduction,magneticdomainrefinement,lownoise,lowexcitation,nobottomlayer,andmediumfrequency.ZhixinCo.hasindependentlydevelopedlow-temperatureslabheatingtechnologytoproducehighmagneticinductionorientedelectricalsteel,becomingthefourthenterpriseintheworldtoindustrializealllow-temperatureprocesses;Non-orientedelectricalsteelincludesfourmajorcategoriesofproducts:newenergyvehicles,stressreliefannealing,high-efficiency,andgeneral-purpose,withstablebatchproductioncapacityforallgrades.

Thecompanyhastheworld'sfirsthigh-gradenon-orientedelectricalsteelproductionlinefornewenergyvehiclesandtheworld'sfirstspecializedproductionlinewith100%thinspecificationandhighmagneticinductionorientedelectricalsteel.

2.JingtangCo.

JingtangCo,thelargesteelbase,isacompanywithaninternationallyadvancedleveldesignedandconstructedinaccordancewiththeconceptofcirculareconomy.Ithastheobviousadvantagesofbeingneartheseaandneartheharbor,largeequipment,highproductionefficiency,andlowcost.

Theproductsincludetwomajorseriesofhotandcoldplates,ofwhichthehotplatesaremainlyhot-rolledpicklingplates,weather-resistantsteels,automobilestructuralsteels,high-performanceconstructionsteel,pipelinesteels,andmediumthicknessplatesforbridgesteel,energysteels,pipelinesteels,marinesteel,andoffshoresteels;andthecoldplatesaremainlyautomobilesheets,tinsheet,cold-rolledspecial-useplate,andcolorcolor-coatedsheetseries.

3.QianshunBase

IronandsteelproductsofQianshunBaseareanimportanthigh-endplateproductionbaseinChina,withworld-classequipmentandindustry-leadingcleansteelmanufacturingtechnology,withhigh-endautoplate,high-endhouseholdapplianceboardfullrangeofsupplycapacity.

Theproductsincludetwomajorseriesofhotandcoldplates,ofwhichthehotplatesmainlycontain:hot-rolledpicklesheet,weather-resistantsteel,automobilestructuresteel,high-strengthconstructionmachinerysteel,pipelinesteel,mediumtohighcarbonspecialsteel,etc.Thecoldplatesmainlycontain:automobilesheets,cold-rolledspecial-useplates,etc.III.Analysisofcorecompetitiveness

1.Leadingleveloftechnology

TheCompanyadherestotheinnovation-drivenapproachandpromotestechnologicalinnovationasitsprimarycompetitiveadvantage,andcontinuouslyappliesitstechnologicalachievementstohigh-endproductdevelopment,efficientproductionandmanufacturing,greenandlow-carbonmanufacturing,andotherfields.TheCompanyanditssubsidiariesJingtangCo.,ZhixinCo.,andCold-RCo.areallhigh-techenterprises.Duringthereportingperiod,ZhixinCo.washonoredonthelistofChina'sUnicornEnterprisesandwasawardedbytheStateCouncilasanoutstanding“ScienceandTechnologyReformEnterprise”oftheyear.TheCompanyintegratesinternalandexternalresources,relyingonthe"oneinstitute,multiplecenters"R&Dsystem,theCompanycarriesoutin-depthtechnicalresearchprojects,optimizesexpertworkstations,andsolidifiesexternalcooperationplatforms.Theincubationandefficiencycreationofnewproducts,technologies,andprocessesareconstantlyaccelerating.Thesignificantprogressmadeduringthereportingperiodincludes:

Patents:TheCompanyhasobtained405patentauthorizations,including125inventionpatents.Thepatentsaremainlyconcentratedinthefieldsofnewproductdevelopmentandefficientproduction,amongwhich“RewindingMethodandDeviceforCoilingMachine”wontheExcellenceAwardofthe25thChinaPatentAward,andfivepatents,including“DevelopmentofKeyTechnologyforHigh-PrecisionFlexibleRollingofUltra-WideColdContinuousRollingMillsanditsIndustrializedApplication”and9otherpatents,wereawardedtheGoldPrizeoftheExhibitionofthe27thNationalInventionExhibition.Attheendof2024,theCompanyhadbeenauthorized3,924patents,including1,379inventionpatents.

Standards:TheCompanyhasparticipatedintheformulationandpublicationof36international,national,industry,andgroupstandards,with17ofthemleadingthedevelopment.

Scienceandtechnologyawards:TheCompanyhaswonanumberofawardsforlow-carbontechnologyandadvancedprocessmanufacturingtechnology.The“GreenCleanSteelmakingTechnologyandApplicationBasedonCarbonDioxideResourceUtilization”wasawardedtheSecondPrizeofNationalScientificandTechnologicalProgress,the“IntegrationandInnovationofMCCRMulti-ModeFullContinuousCastingandRollingIntegrationTechnology”wasawardedtheSpecialPrizeofMetallurgicalScienceandTechnology,andsixachievements,includingthe“High-quality,Efficient,andStableRollingTechnologyandApplicationofHigh-SiliconElectricalSteel”,wereawardedtheFirstPrizeofMetallurgicalScienceandTechnology.

2.High-endproducts

TheCompanyadherestothedevelopmentstrategyofcontinuouslyleadingthewayinelectricalsteel,refiningandstrengtheningautomotivepanels,andbreakingthroughthehigh-endtin-plated(chromium-plated)plate.Itcontinuouslyincreasestheproportionofstrategicandkeyproducts,promotingbothproductqualityandefficiencyimprovement.Duringthereportingperiod,theproductionofthethreemajorstrategicproducts(electricalsteel,automotivepanels,andtinned(chrome)panels)increasedbyabout7%year-on-year,whiletheproductionofkeyproductsincreasedbyabout2%year-on-year.Theproductionofelectricalsteelis1.986milliontons,anincreaseofabout17%year-on-year,andtheoutputofhigh-endproductshasachievedahistoricalhighrecord.Theoutputofhighmagneticinduction-orientedelectricalsteelis332,000tons,anincreaseofabout11%year-on-year,andtheultra-thinspecificationofhighmagneticinduction-orientedelectricalsteelof0.20mmandbelowcontinuestomaintaintheleadingsalesvolumeinChina.Thestructureofnon-orientedelectricalsteelproductscontinuedtobeoptimized,withaproductionvolumeof893,000tonsofhigh-gradenon-orientedelectricalsteelproducts,anincreaseofabout11%year-on-year,ofwhichtheproductionvolumeofhigh-gradenon-orientedelectricalsteelproductsfornewenergyvehiclesincreasedbyabout27%year-on-year,andthestablesupplyofnewenergyvehicleswasrealizedbytheworld'stop10sellersandthedomestictop10sellers,andoneoutofeverythreedomesticnewenergyvehiclescarriedthe“ShougangCore”.

Theproductionofautomotivepanelsreached4.394milliontons,ayear-on-yearincreaseofabout9%,andnewbreakthroughsweremadeintheadjustmentofproductstructureanduserstructure.Theproductstructurewasfurtheroptimized,withtheproductionofgalvanized,high-strength,andouterplateincreasingbyabout24%,18%,and15%year-on-yearrespectively,theproductionofzinc-aluminum-magnesiumandaluminum-siliconproductsincreasingbyabout19%,and27%year-on-yearrespectively,andtheproductionofUFsteelincreasingbyabout71%year-on-year.Theuserstructurewasfurtherupgraded,withthesupplyvolumeofproductsfornewenergyvehiclesincreasingbyabout35%year-on-year.

Theproductionoftin(chromium)platesamountedto690,000tons,anincreaseofabout5%year-on-year,andthemanufacturingcapacitywasfurtherimproved.Theproductionofkeyproductssuchasfunctionaldrinks,easy-openlids,andaerosolvalvesforuseaccountedfor65%ofthetotal,anincreaseofabout24%year-on-year.ThetinandchromiumplatesofDRmaterialhaveachievedfullcoverageofstrengthlevel,thesupplyofDImaterialhasreached16,000tons,arecordhigh,andtheculturalandcreativeproductssuchas“5GSteel”haveappearedonCCTVFinanceandEconomyandbecomepopularintheNPCandCPPCC.

Newprogresshasbeenmadeinpromotingthespecializationanddifferentiationofkeyproducts,servingnationalkeyprojectsandemergingindustries.Thethinspecification9Nisteelrollingandheattreatmentmanufacturingcapacitywasfurtherimproved,realizingthefirstbatchsupplyof5mmthinspecificationlandtankproducts.100mmsuper-thickhigh-strengthwindpowersteelisappliedtotheoffshorewindpowerprojectinZhanghua,Taiwan,136mmextra-thick800MPahydropowersteelissuppliedtothenationallarge-scalehydropowerprojects,bridgesteelisappliedtotheworld'slargestspancable-stayedbridge-ChangtaiYangtzeRiverBridgeandacid-resistantpipelinesteelisusedintheconstructionofoverseasenergyprojects.TheCompanyhasestablishedajointlaboratorywithZhongshanQingliantodevelopmediumtohighcarbonspecialsteelforgardeningtoolsandotherspecialsteels,whichhavebeensuppliedinlargequantities;completedthedevelopmentofX60gradehydrogenpipelinesteel,andpresidedovertheformulationofthenationalstandardof“SteelPlatesandStripsforHydrogenTransportationandStoragePipelines,”whichhasledthedirectionofthedevelopmentofhydrogenpipelinesteels.

3.Greenandlow-carbon

Astheworld'sfirststeelenterprisetoachievefullprocessultra-lowemissions,theCompanyhasdeeplypromotedultra-lowemissiongovernanceandmaintainedanA-levelenvironmentalperformanceevaluationinHebeiProvince.TheCompanyadherestothehigh-qualitydevelopmentpathofgreenandlow-carbon,and

activelypromotesthepracticeofextremeenergyefficiencyandcarbonreductiontechnologyaroundthenationallow-carbonstrategyandcustomercarbonreductionneeds.Duringthereportingperiod,theCompanyfulfilledthelow-carbonactionplan,launchedahigh-qualitysteelprojectwithnearly“zero”carbonemission,andsignedamemorandumofcooperationongreenandlow-carbonsteelandironsupplychainwithcorecustomerssuchasBMWBrillianceandVolvo,andsetupaclosed-loopsteelrecyclingsystemtobuildagreenecologicalsupplychainandhelprealizethedual-carbongoal.

TheCompanywashonoredas“GreenandLow-carbonExcellenceEnterprise”and“IronandSteelGreenDevelopmentBenchmarkingEnterprise”,JingtangCo.washonoredas“WaterEfficiencyLeader”again,andJingtangCo.andQiangangCo.completedtheon-siteinspectionandacceptanceoftheenergy-efficiencybenchmarkingdemonstrationenterprise,andJingtangCo.wasawardedthefirstbatchof“Double-carbonBestPracticeEnergyEfficiencyBenchmarkingDemonstrationPlants”intheindustry.TheCompanysuccessfullypublishedEPDsforthreeproducts:pickledhot-rolledsteelplatesandstrips,thicksteelplates(heat-treated),andthicksteelplates.

4.Intelligentmanufacturing

TheCompanyhasestablishedacross-region,multi-base,consistentintegratedproductionandsalescollaborativemanagementplatform,empowershigh-qualitydevelopmentwithdigitaltransformation,makesfulluseofthestrategicopportunitiesbroughtbynew-generationinformationtechnologiessuchasbigdata,cloudcomputing,artificialintelligence,5G,etc.,andcarriesoutin-depthconstructionofintelligentmanufacturingprojects,whichhasmadegreatprogressintermsofefficiencyandbenefits,productsandservices,managementandcontrolsystem,andpreventionandcontrolcapabilities,andhasconstructedasolidfoundationforhigh-qualitydevelopment.ThedigitizationrateoftheproductionequipmentoftheCompanyexceeds91%,thenumberof“one-buttoncontrol”processesreaches51,240setsofindustrialrobotsareapplied,15unmannedintelligentwarehousesareconstructed,thedigitalworkforceplatformisestablishedbyapplyingtheRPA(Roboticprocessautomation)technology,and26usecasesofprocessrobotsareconstructed,whichsignificantlyimprovestheefficiencyofthebusinessprocess.

Duringthereportingperiod,Cold-RCo.wasselectedasanationalintelligentmanufacturingbenchmarkenterpriseandlistedasoneofthefirstbatchesofexcellence-levelintelligentfactoryprojectsofMIITbyvirtueoftheconstructionresultsofanintelligentfactorybasedonsuper-convergencecomputingplatform;JingtangCo.realizedthefirstcaseof5Gprivatenetworksinkingintheindustryandwasselectedasoneofthe“5Gfactorydirectories”ofMIITfortheyearof2024,andwasawardedthetitleof“5G+IndustrialInternet”annualbenchmarkdemonstrationcase,andwashonoredasthe“OutstandingContributionEnterpriseofIntelligentManufacturing”intheironandsteelindustry,“DigitalPilot”enterpriseofHebeiProvince.

5.Supplychainsecurity

TheCompanyistheonlyplatformforthedevelopmentandintegrationofthesteelandupstreamironoreresourcesindustryofShougangGroup,thecontrollingshareholder,inChina.Thesupplyofironore,coke,andcoalresourcesforproductionisguaranteedtobesafe.Intermsofironore,ShougangGroupownsShuichangIronMineandXingshanIronMinewithanannualproductioncapacityof4milliontonsofironconcentratepowder.Atthesametime,itcontrolsthePeruIronMinewithanannualproductioncapacityof20milliontonsofironconcentratepowder,andtheMachengIronMinewithanannualproductioncapacityof7milliontons.MashongIronMine,whichischaracterizedbyhighreserves,lowcost,andefficienttransportationintermsofenvironmentalprotection,hasenteredintothetrialproductionstage,andtheCompany'sabilitytoguaranteeironmineresourceswillbefurtherimprovedafteritisputintoproduction.Intermsofcoke,QiangangCo.'scokeismainlysuppliedbyQian'anZhonghuaCoalChemicalCo.,Ltd.,ajointventurebetweenShougangGroupandKailuanGroup,whileJingtangCo.'scokeissuppliedbyTangshanShougangJingtangXishanCokingCo.,Ltd.,ajointventurebetweenJingtangCo.andShanxiCokingCoal.Thesupplyofcokeresourcesisstronglyguaranteed.Intermsofcoal,theCompanyhassignedalong-termagreementwithstate-ownedlargecoalgroups,andShougangFushanResourcesGroupCo.,Ltd.,inwhichShougangGroupholdsshares,alsoprovidestheCompanywithsomehigh-qualitycokingcoalresources,providingastrongcoalsupplyguarantee.

6.“Technology+Service”marketing

TheCompanytakesthecustomerasthecentertodeepenthemarketingstrategyof"technology+service",andcreatesShougangservicetoenhancethebrandvalue.TheCompanycontinuestoimprovetheservicesystem,improveserviceefficiency,strengthentheconstructionofthenewenergyvehicleserviceteam,andmeetcustomers'requirementsforquality,delivery,researchanddevelopment,service,andtechnicalmarketingcontinuestostrengthen.EVIservicecapacitywasimprovedyearbyyear.Duringthereportingperiod,EVIsupply

increasedby15%year-on-year.Theproductadvantageanalysismodelestablishedbythecompanypromoteskeyproductstomaintaincompetitiveadvantagesandstrategicproductstoexpandleadingadvantagesbystrengtheningproductresearchanddevelopmentandimprovingmanufacturingcapacity.Acentralized,unified,rapidresponseandefficientmarketingmanagementnetworkhasbeenformed,withamarketingcenterasthecoreandacombinationof5regionalsteeltradingsubsidiariesand11processingcenters,effectivelyensuringstablesupplytodownstreamcustomers.15largecustomerserviceteamshavebeenestablishedtoconsolidateandimprovethechannelstructurethatcombinesleadingenterprisesintheindustrychainwithhigh-qualitysmallandmedium-sizedcustomers.Cultivatecomparativeadvantagesinindustrialchaincooperation,carryoutcomprehensive,multi-level,andhigh-qualitycooperationwithkeycustomersintheindustry,furtherenhancecooperationdepth,enhancecooperationviscosity,andstabilizemarketshare.Duringthereportingperiod,theCompanysignedcooperationmemorandumswithcorecustomerssuchasBMWBrilliance,Volvo,andGeely,carriedout“ShougangDay”activitieswithDongfengNissanandCheryAutomobile,carriedouttechnicalexchangeswithfiveenterprisesuchasToyotaIntelligentElectricVehicleResearchandDevelopmentCenter,andsetuptheShougang-ZhongshanQinglian"JointLaboratoryforR&DofSteelforGardenTools”,awarded“ExcellentSupplier”byGACHondaandNantongCIMC,“OutstandingSupplier”byGeely,and“BestServiceAward”byDongfengHonda,andthe“OutstandingPartnerAward”ofHaierGroupand38otherawards,therecognitionofShougang's"Manufacturing+Service"continuestoincrease.

7.TalentthrivingenterpriseTheCompanyhasdeeplypromotedthestrategyofstrengtheningenterpriseswithtalent,builtamulti-levelandcomprehensivetrainingsystemforallemployees,improvedthetalentpromotionandevaluationmechanism,andfacilitatedthecareerdevelopmentpathoftalents.Acareerdevelopmentsystemforhighpotentialtalentsthroughouttheirentirelifecyclehasbeenestablished,andsolidlypromotedthe"fourhorizontalandthreevertical"trainingsystemforallemployees,heldtrainingprogramssuchasDeepBlueSpecialTrainingCampandFutureCraftsmanYouthTrainingCamp,strengthentalentempowerment,andbuildaplatformforcadrestoimproveandgrow;Optimizethetop-leveldesignoftalentdevelopmentchannels,strengthentheperformance-orientedandpracticalorientation,strengthenthetraininganddevelopmentofhigh-levelpersonnel,andsteadilyincreasetheproportionofhigh-techandhighskilledtalents.

Duringthereportingperiod,onepersonfromtheCompanywontheFirstPrizeofMetallurgicalScienceandTechnologyAwardforScientificandTechnologicalAchievementsofFirst-LineWorkers,onepersonwonthe2024NationalMayDayLaborMedal,onepersonwasselectedasoneofthefirstbatchofcultivationobjectsofGreatPowerCraftsmen,andoneinnovationstudiowasawardedastheBeijing-levelinnovationstudio.

IV.Analysisofprincipalbusiness

1.Overview

(1)CompletionstatusoftheCompany'smainbusinessindicators

Duringthereportingperiod,theCompany'soperatingrevenuewasRMB108.311billion,ayear-on-yeardecreaseof4.79%;ThetotalprofitwasRMB746million,ayear-on-yeardecreaseof17.18%;ThenetprofitattributabletoshareholdersofthelistedcompanywasRMB471million,ayear-on-yeardecreaseof29.03%;EarningspersharewasRMB0.0607,ayear-on-yeardecreaseof29.09%;ThetotalassetswasRMB131.856billion,andtheequityattributabletotheshareholdersofthelistedcompanywasRMB49.617billion.

(2)HighlightsoftheCompany

In2024,theCompany'soperationandproductionwerestable,withsignificantachievementsinproductmix,technologicalinnovation,greenandlow-carbon,intelligentmanufacturing,internalcostreduction,andESGmanagement.

①Continuousoptimizationofproductstructure

TheCompanycloselymonitorsthechangesindownstreamdemand,focusesonefficiency,continuouslypromotesproductstructureoptimizationandupgrading,andincreasestheproportionofstrategicandkeyproducts.Duringthereportingperiod,theoutputandshareofkeyandstrategicproductswerethebestinhistory.

Duringthereportingperiod,thetotalproductionof3strategicproducts(electricalsteel,automotiveplate,andtin(chromium)plate)and9keyproducts(cold-rolledspecialsteel,hot-rolledpicklingplate,

weather-resistantsteel,energysteel,automotivestructuralsteel,high-strengthengineeringmachinerysteel,pipelinesteel,bridgesteel,andshipplatemarinesteel)was17.27milliontons,accountingfor74%oftheCompany'stotalsteelproduction,anincreaseof5percentagepointsyear-on-year.

②ComprehensivepromotionoftechnologicalinnovationThecompanyisledbytechnologicalinnovation,focusingonforgingkeycoretechnologystrengths.Itcontinuestomakenewbreakthroughsinnewproductresearchanddevelopmentandkeyprocesstechnologiesandpromotesthetransformationofenterprisedevelopmentqualitytowardshigherefficiency,resilience,andsustainability.Duringthereportingperiod,sixfirstproductsandtwofirstprocesseswerecompleted.Focusingonsolvingthe"bottleneck"problem,wewillcontinuetopromote19localizationprojectsof"substituteimports",resultinginasupplyof15000tons.

Intermsofnewproductdevelopment,realizedthefirstlaunchofsixnewproducts,includinglow-noiseorientedelectricalsteel,non-orientedelectricalsteelwithself-bondingcoating,and1500MPagradesteelforhotforming.Amongthem,low-noiseorientedelectricalsteelproductsforwindpower,photovoltaicandothernewenergygenerationDCconvergenceofnewtechnologiestoprovidekeycorematerialstomeetthenewnationalstandardfortransformerstoreduceno-loadloss,thepowergridcompanytoreducetherequirementsofthenoise,thenoiseis10%lowerthantraditionalproducts;Self-bondingcoatingnon-orientedelectricalsteelproducts,throughindependentinnovationofbakingprocess,significantlyshortenthebondingtime,intherealizationofthecorestiffnessandthermalconductivitysignificantlyimprovedatthesametime,thecoreironlossisreducedby30%,forthenewenergyvehicleenergyefficiencyupgradingtoprovideanewmaterialsupport;1500MPagradesteelforhotforming,throughtheoptimizationofpurezincplatingcompositionandprocessinnovation,thematerialhasbettercorrosionresistanceandweldingperformance,reducesthecracksensitivityunderthedirecthotformingprocess,andmeetstheindustry'sdevelopmentneedsofhighstrengthandhighcorrosionresistanceforvehiclebodysafetystructuralparts.

Intermsofkeyprocesstechnology,itisthefirsttocreateanewlow-carbonandgreensinteringprocessbasedoncarbonandoxygenreconfiguration,realizingstable,economic,high-efficiency,andcontinuousproductionoflarge-scalesinteringmachinewithverylowprocessenergyconsumptionandanextremelysmallamountofexhaustgas,whichreducessulfurdioxideemissionby39%,nitrogenoxideemissionby31%,andtheamountofexhaustfumesemittedfromtonnesofsinteredoreby37%comparedwiththatofthetraditionalprocess;Itisthefirstautomotiveplateenergydeploymentresistancespotweldingtechnology,solvingtheproblemsofthenarrowwindow,falseweldingandspatteringinresistancespotweldingprocessofultra-high-strengthsteelandzinc-basedplatingproducts,greatlyimprovingweldingefficiencyandsignificantlyreducingenergyconsumption.

③Greenandlow-carbonbenchmarkleading

TheCompanyactivelypromotestheimplementationofthe“ShougangGroupLowCarbonActionPlan”,promotestheconstructionofalow-carbonmanagementsystem,buildsagreenandlow-carboneco-supplychain,carriesouttheproductionandsaleoflow-carbonproducts,andsteadilyformsthecompetitiveadvantageofproductdifferentiation.JingtangCo.pushedforwardtheefficientrecyclingandutilizationofsolidwastesandwasselectedasatypicalcaseof“Waste-freeEnterprise”bytheMinistryofIndustryandInformationTechnology.

Promotetheconstructionofalow-carbonmanagementsystem.Establishalow-carbonmanagementpromotionorganization,formadynamictrackingandregularsummaryandevaluationmanagementmechanism;Establishanintelligentcarbonmanagementplatform,withthefunctionofvisualizinganddisplayingthecarbonemissiondataofeachproductionbase,toensurethatthecarbondatacanbetracedbacktomeetthedatarequirementsoftheironandsteelindustryafteritentersthenationalcarbontradingmarket;

Createagreen,low-carbon,andecologicalsupplychain.TheCompanypromoteskeysupplierstoformulatedual-carbonplansandspecificcarbonreductionmeasures,promotes13upstreamsupplierstocarryoutcarbonfootprintcertificationofkeymaterials,andgraduallyestablishesareal-worlddatafactorlibraryofupstreammaterials;Exhibitionofautomobileplate,electricalsteelandotherproductstoreducecarbonbenchmarkvaluecertificationandlow-carbontechnologycertification,theformationof“Shouganggreenlow-carbonproductpricesystem”andShouganggreenlow-carbonproductseriesofcorporatestandards,applyforsixgreenlow-carbonproducttrademarks;Duringthereportingperiod,theCompanysignedthe“MemorandumofCooperationonEstablishingaGreenandLow-CarbonSteelandIronSupplyChain”withBMWBrilliance,the“MemorandumofCooperationontheCircularEconomyandClosed-loopRecyclingValueSystemforAutomotiveSteel”withGeelyAutomobile,andthe“Closed-loopRecyclingValueSystemforSteel”withVolvoandZhejiang

Yiyun,soastorealizethesynergisticcarbonreductionincross-sectoralareasandtomakecontributiontothegreenandsustainabledevelopment.Upgradingproductioncapacityforlow-carbonproducts.Inordertoimplementthedual-carbonplanandmeetthedemandforlow-carbonproductsfromourcorecustomers,theCompanyispromotingademonstrationprojectforsmeltinghigh-qualitysteelwithnear-zerocarbonemissions,inordertoestablishafoundationfortheproductionofmoresubstantiallycarbon-reducedproducts;Continuouslypromotetheapplicationoflargeproportionofpelletsmeltingtechnologyinblastfurnace,JingtangCo.maintainsthestableoperationof55%pelletmineratio,realizestheconverterprocessof50%largescrapratioofmulti-furnacecontinuouspouring,andreducesthecarbondioxideemissionoftonsofsteelbymorethan40%,whichprovidesanimportantsupportforthelongprocessofsignificantlyreducingcarbonemissions;Carryingoutresearchonhydrogen-richsmeltinginblastfurnace,completingthedesignofexperimentaldeviceandrealizingtheblowingofcokeovengas;carryingoutthe100-tonindustrialtestofblowingbiomasshydrogen-richmicro-powderinblastfurnace,whichisabreakthroughintheuseofbiomassenergyinironandsteelmetallurgyinChina.

④DigitalintelligenceempowermentcontinuestodeepenTheCompanypromotesthedeepintegrationofdigitalizationandindustrializationanddrivesmanagementimprovement,manufacturingupgrading,andcostcompressionandreductionthroughdigitalizationandinformationization.EstablishedtheDigitalandIntelligentTransformationCenterandformulatedtheShougangCorporationDigitalTransformationActionPlanfor2024-2026,focusingontheconstructionof“ColdRollingLighthouseFactory”and“IronFrontIntegration”,“JingtangIntelligentLogisticsManagementandControlPlatform”topromotedigitaltransformationandintelligentmanufacturinglevel.

Cold-RCo.hasbeensuccessfullyselectedasthe13thbatchoftheglobal“LighthouseFactory”listbythewideapplicationofIndustry4.0advancedtechnologies,suchas5G,bigdata,AI,machinevision,androbots,becomingthethird“LighthouseFactory”inthenationalironandsteelindustry,andtheseventhintheglobalironandsteelindustry.Aroundthequalitymanagementintelligence,automaticcontroloftheproductionprocess,equipmentmaintenancedigitalization,warehousingandlogisticsintelligence,energy,andenvironmentalprotectionintelligence,hazardouspositionslessmanned-unmannedinsixdirections,thedeploymentof67digitalapplicationcases,significantlyimprovetheefficiencyoftheproductionline,effectivelyreducethequalityoftheloss.

QiangangCo.hascompletedtheconstructionofthe“Pre-ironIntegration”informationsystem,breakingtheinformationbarrier,completingtheintegrationofdataresources,andinformationfusion,andrealizingthecloseconnectionofsupply,production,andqualitybusinesses.TheCompanyhassetupanintelligentcontrolcenterinfrontoftheironworks,andimplementedtheoperationmodeof“Bigposition,bigworktype”,whichmakestheoperationmanagementmoreefficientandaccurate,andrealizestheefficiencyimprovementofthecontrolofironmakingoperation.

JingtangCo.coordinatedtopromotetheconstructionofanintelligentmanufacturingsystem.Duringthereportingperiod,theconverterintelligentsteelmaking,2230galvanizedintelligentproductionline,medium-thicknessplateintelligentscheduling,intelligentlogisticscontrolplatform,andunmannedwarehousingprojectswerecompletedandputintouse.Amongthem,throughtheintelligentlogisticsmanagementandcontrolplatform,remodelingbusinessmanagementmodel,plantlogisticstobreakthetraditionalmonthlycontract,contractprojectfixedcarmode,theimplementationofthe“open”capacitycompetition,logisticsefficiencyasawholewasgreatlyimproved,thecostofusingthecarsignificantlyreduced.

⑤Continuousimprovementininternalcostreduction

TheCompanystrengthenedthebenchmarkingwiththebenchmarkenterprisesonthebasisofstableproduction,deeplyexploredthepotentialofcostreductioninthewholeprocessandelements,builtasustainablecostreductionsystem,rolledforwardthekeycostreductiontasks,andeffectivelyhedgedtheprofitreductionfactorsintheexternalmarketsothattheworkofcostreductioninconsumption,technology,andsynergyreachedanewlevel.

Intermsofconsumptionandcostreduction,theCompanystrengthenstheoperationoftheintegratedplatformforironandsteelproduction.QiangangCo.andJingtangCo.adheretotheprinciplesofeconomicmaterialutilization,resourcecoordinationandmutualpreparation,focusingonthecostofcoalandmineraldistribution,ironandsteelconsumptionandotherkeyindicatorsofbenchmarking,andvigorouslypromotetheefficientuseofsolidsecondaryresources,andcontinuetoreducethecostsoftheironandsteelprocesses;Breakingtheprocessinterface,ironandsteelsystemcollaborationandeconomiccontrolofsulfur,ironandsteelsynergytoreducethetemperaturedropofironandsteel,duringthereportingperiod,relocatingtheCompany's

ironandsteellowerthanthelastyear13℃,thebestlevelinhistory.

Intermsoftechnicalcostreduction,theCompanycontinuedtocarryoutalloysubstitutionandoptimizationofproductmaterialdesign,promotedtheoptimalapplicationofmanganesealloy,andsteadilyreducedtheconsumptionofalloy;itvigorouslypromotedthereductionofmetallossinthewholeprocess,reducedtheconverterblowinglossinthesteelmakingprocessthroughtechnicalresearch,improvedtheproductyieldrateintherollingprocess,andachievedanewleapintheoverallcontrolofmetalloss.Intermsofcollaborativecostreduction,theCompanyhasformedaproduction-supplycoordinationmechanismtocarryoutall-roundandall-factormaterialcostreduction;strengthenedthecontrolofequipmentcosts,andreducedoperatingcoststhroughnegotiationofcostreduction,domesticconversion,independentrepair,andothermeasures;andresolutelypursuedtheultimateenergyefficiencytorealize“fullrecoveryandefficientutilization”ofgas,andenhancetheabilityofbalanceandoptimizationofthewholeenergysystem.

⑥SignificantimprovementoftheESGmanagementsystem

TheCompanyhighlyattachesimportancetoESGmanagementandhasestablishedanESGgovernancestructureconsistingoftheBoard,theStrategy,Risk,ESGandComplianceManagementCommittee,andtheESGWorkingGroup,andhascontinuedtoimproveESGmanagementthroughtheformulationofESG-relatedsystems,ESGtraining,andotherinitiatives.

Duringthereportingperiod,theCompanyupdateditsassessmentmethodologyinaccordancewiththe“ShenzhenStockExchangeSelf-RegulatoryGuidelinesforListedCompaniesNo.17-SustainabilityReport(forTrialImplementation)”,andidentified30highlyrelevantandimportantissuesbasedonthecoverageofalltheissuesonwhichtheExchangerequiresthedisclosureofinformation,andimplementedregularizedmanagementofmaterialissues;Basedonthis,thefinancialperspectivewasintegrated,andthefirstdualmaterialityassessmentwasconducted,suchasrespondingtoclimatechange,environmentalcompliancemanagement,andenergyutilization,forhigh-qualitydisclosuretothecapitalmarketaccordingtofourdimensions,namely,governance,strategy,riskandopportunitymanagement,andindicatorsandtargets.

Duringthereportingperiod,theCompanyorganizedthefirstESGforumintheironandsteelindustry-ESGChinaInnovationConference(2024)“ESGInnovationandExplorationintheIronandSteelIndustry”sub-forum.

TheCompany'sESGratingsimprovedsignificantly,withtheS&PESGscoreof39jumpingtofourthplaceintheindustryduringthereportingperiod,andtheFTSERussellESGscoreincreasingfrom1.1to2.4,jumpingtothirdplaceintheindustry;TheCompanywasawardedthe“SecondStateNewCupESGGoldenBullAwardTop100”enterprises,the2024EnterpriseESG“GoldenResponsibilityAward”BestSocialResponsibilityAward,andwasincludedinthelistof2024ChinaEnterpriseESG100Index.The“GreenProductivityDevelopmentbyCreatingTechnologyPioneersforGreenandLow-CarbonDevelopment”washonoredasoneoftheTop10ESGCasesofBeijing'sState-HoldingListedCompanies,andthe“ImprovementofLow-CarbonManagementInformatizationSystemtoMakeGreenandLow-Carbon‘Visible’”wasincludedinthe“Top100Low-CarbonBrands”caseandotherhonors.

2.Revenueandcost

(1)Compositionofoperatingrevenue

Unit:RMBYuan

2024

NorthChina

(2)Industries,products,orregionsthatgeneratedoperatingrevenueoroperatingprofitthatwasover10%ofthetotaloperatingrevenueoroperatingprofitoftheCompany

√Applicable□Non-applicable

Unit:RMBYuan

TheadjustedprincipalbusinessdataaccordingtothefinancialreportoftheCompanyunderthecircumstancesthatthestatisticalrangesoftheCompany’sprincipalbusinessdatachangedduringthereportingperiod.

□Applicable√Non-applicable

(3)Whetherrevenuefromsalesofgoodsismorethanfromrenderofservices

√YES□NO

Explanationintheyear-on-yearchangeofmorethan30%basedontheabovedata

□Applicable√Non-applicable

(4)Fulfillmentofthesignedsignificantsalescontractsandpurchasecontractsduringthereportingperiod

□Applicable√Non-applicable

(5)CompositionofcostsofsalesIndustry

Unit:RMBYuan

Industry

(6)Whetherthescopeofconsolidationchangesduringthereportingperiod

□YES√NO

(7)Significantadjustmentsorchangesinbusinesses,products,orservicesduringthereportingperiod

□Applicable√Non-applicable

(8)MajorclientsandsuppliersMajorclientsoftheCompany

InformationfortopfiveclientsoftheCompany

OtherinformationforThemaincustomersoftheCompany

□Applicable√Non-applicable

□Applicable√Non-applicableMajorsuppliers

InformationforthetopfivesuppliersoftheCompany

OtherinformationforThemainsuppliersoftheCompany

□Applicable√Non-applicable

3.Expenses

Unit:RMBYuan

4.Researchanddevelopmentinvestment

√Applicable□Non-applicable

empiricalknowledge,andtoimprovethethicknesscontrolcapabilityforcomplexworkingconditionsandboundaryconditionvariations;Adoptingthesampletrackingmethodbasedonthespeedandthestripthicknessbetweentheracks,thethicknesscalculationmodeloftheracksisestablishedtocontrolthelongitudinalthicknessdeviationofthestrip;TheeccentricitycompensationmodelbasedontheFouriertransformisdevelopedtoeliminatetheinterferenceoftheeccentricityoftherollsandtoimprovetheaccuracyofthestripthicknesscontrol.

thefeasibilityof71passivationprocessimprovement,itisimportanttoimprovetheperformanceoftheproductandtheuser'sexperience,continuetooccupyashareofthemarket,andtomaintaintheleadingpositionintheindustry.

technologyfirst,itisnecessaryforShougangtoparticipateinthetrialproductionandcarryouttheresearchanddevelopmentofgreenhigh-levelpipelinesteel.

orientedsiliconsteelproducts

Occupythemarketshareofhigh-endmanufacturinginthegreenenergystorageindustry,filltheblankofdomesticvariable-speedpumpedstoragemotors,andexpandthesocialinfluenceofthecompany'snon-orientedsiliconsteel.

≥200tonsineachbatch.

Researchanddevelopmentinvestment

DetailsaboutR&Dinvestments:

2024

ReasonsforanysignificantchangeinthecompositionofR&Dpersonnelandtheimpact:

□Applicable√Non-applicableReasonsforanysignificantyear-on-yearchangeinthepercentageofR&Dexpenseinoperatingrevenue:

□Applicable√Non-applicableReasonsforanysharpvariationinthepercentageofcapitalizedR&Dexpenseandrationale:

□Applicable√Non-applicable

5.Analysisofcashflow

Unit:RMBYuan

Mainreasonsforsignificantyear-on-yearchangesinrelevantdata

√Applicable□Non-applicable

1.Thedecreaseincashinflowfrominvestingactivitieswasmainlyduetotheimpactoftherecoveryofinvestmentin2023andthedecreaseindividendpaymentsreceivedin2024.

2.Thedecreaseincashoutflowsfrominvestingactivitieswasmainlyduetotheimpactofthepaymentfortheball-burningacquisitionin2023andthedecreaseincashexpendituresforthepurchaseandconstructionoffixedassetsandintangibleassetsin2024.

3.Theincreaseinnetcashflowsfrominvestingactivitiesismainlyduetotheimpactoflowercashoutflowsfrominvestingactivitiesin2024.

4.ThedecreaseinnetcashflowsfromfinancingactivitieswasmainlyduetotheimpactofthecapitalcontributionreceivedbyZhixinCo.fromitsshareholdersin2023andthedecreaseincashreceivedfromtheacquisitionofborrowingsin2024.

5.Thedecreaseinthenetincreaseincashandcashequivalentswasmainlyduetotheimpactofthedecreaseinnetcashflowsfromfinancingactivities.

√Applicable□Non-applicable

Duringthereportingperiod,thecashflowgeneratedfromoperatingactivitieswasRMB6.329billion,andthenetprofitwasRMB595million,thedifferencewasRMB5.734billion.Themainreasonsare:assetsimpairmentprovisionandcreditimpairmentlossesofRMB594million,depreciationandamortizationofRMB8.036billion,financialexpensesofRMB1.188billion,RMB-1.119billioninanincreaseinreceivablesfromoperatingactivities,andRMB-4.197billioninadecreaseinpayablesfromoperatingactivities,RMB795millioninadecreaseininventory,aninvestmentlossofRMB307million,andRMB130millionforothers.

V.Non-principalbusinessanalysis

□Applicable√Non-applicable

VI.Assetsandliabilities

1.Significantchangesinthecompositionofassets

Unit:RMBYuan

31December2024

Foreignassetsaccountforarelativelyhighproportion:

□Applicable√Non-applicable

2.Assetsandliabilitiesmeasuredatfairvalue

√Applicable□Non-applicable

Unit:RMBYuan

737.28

OtherchangesAlloftheCompany'sfinancingreceivablesarebankacceptancenotes,andincreasesordecreasesarechangesinreceiptsandpayments.WhethertheCompany'smainassetmeasurementattributeshavechangedsignificantlyduringthereportingperiod

□YES√NO

3.Majorrestrictedassetsattheendofthereportingperiod

VII.Investmentanalysis

1.Overallsituation

√Applicable□Non-applicable

2.Significantequityinvestmentduringthereportingperiod

□Applicable√Non-applicable

3.Significantnon-equityinvestmentduringthereportingperiod

□Applicable√Non-applicable

4.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√Non-applicableTheCompanyhasnosecuritiesinvestmentduringthereportingperiod.

(2)Derivativesinvestment

□Applicable√Non-applicableTheCompanyhasnoderivativesinvestmentduringthereportingperiod.

5.Useofraisedfunds

□Applicable√Non-applicableTheCompanyhasnouseofraisedfundsduringthereportingperiod.

VIII.Materialdisposalofassetsandequity

1.Materialdisposalofassets

□Applicable√Non-applicable

2.Materialdisposalofequity

□Applicable√Non-applicable

IX.Analysisofmainholdingcompaniesandstock-jointlycompanies

√Applicable□Non-applicableMainsubsidiariesandstock-jointlycompaniesthathaveanimpactonthecompany'snetprofitofover10%.

Unit:RMBYuan

&SteelCo.,Ltd.

Acquisitionanddisposalofsubsidiariesduringthereportingperiod

□Applicable√Non-applicableX.StructuredentitycontrolledbytheCompany

□Applicable√Non-applicable

XI.Futuredevelopmentprospects

1.IndustrypatternanddevelopmenttrendIn2025,China'seconomyisexpectedtoremainrelativelyresilientasthecountry'sincrementalpolicypackagetakeseffect.Theironandsteelindustryhasenteredthestageofreducingdevelopmentandstockoptimizationwithmoreobviouscharacteristics.Steeldemandisexpectedtohaveastructuralincrement,inautomotive,homeappliances,shipbuilding,infrastructure,newenergy,andotherindustries,stablegrowthwillprovidestrongsupportforsteeldemand,atthesametime,newenergyequipment,aerospace,robotics,high-endequipmentmanufacturing,andotheremergingindustries,high-endareasofsteeldemandgrowthisobvious.Supply-side,itisexpectedthatthestatewillcontinueto“totalcontrol,structuraloptimization”tone,throughthe“dual-carbon”,environmentalprotectionandotherpoliciestoincreaseproductioncapacitycontrol,promotetheexitofinferiorenterprises,isexpectedtodeclineincrudesteelproductionthroughouttheyear,industrialconcentrationwillbeimproved.Technologicalinnovation,greentransition,andintelligentmanufacturingwillbecomethecorecompetitivenessofsteelenterprises,hydrogenmetallurgy,digitaltransformation,andotherhelptoreducecostsandincreaseefficiency.Rawmaterialcostfluctuationsintensified,ironorepricesmayremainhigh,andthescrapsteelrecyclingsystemcanalleviatesomeofthepressure.Thepolicylevel,“dual-carbon”targetpushedtheironandsteelenterprisestoenergysavingandemissionreduction,theLCAlow-carbonmanagementhasbecomethekey.Industryearningsorbottomout,buttheenterprisedifferentiationissignificant,leadingtechnology,low-carbongreen,andcostcontrolabilityofhigh-qualityenterpriseswillgainalong-termcompetitiveadvantage.

2.DevelopmentstrategyoftheCompanyFocusingontheoverallgoalof“makingthesteelindustrybetterandstronger”,theCompanyadherestothedevelopmentdirectionof“high-end,high-efficiency,intelligentandgreen”andthedevelopmentpositionof“globalfirst-classhigh-endmaterialserviceprovider”.ShougangCo.focusesonpromotingandimplementingthe“TwoStrongandThreeExcellent”project(strongprofitability,innovationability,assetquality,operationalefficiency,andgreendevelopment),andisdeterminedtopursuethestrategyof“Greenmanufacturing,Intelligentmanufacturing,Boutiquemanufacturing,Leanmanufacturing,andPrecisionservice”,adheretotheleadoftechnologicalinnovation,andthedualdriveof“capital+operation”topromotethehigh-qualitydevelopmentoftheenterprise.Continuouslypromotethedevelopmentofhigh-endproductsfocusingonelectricalsteel,automotiveplateandtin(chromium)plate,continuouslyimprovethefivecoreadvantagesofproducts,quality,cost,serviceandtechnology,continuouslyimprovethelevelofsteelmaterialmanufacturingservicesandoperationalefficiency,formsagroupofstrategicproductcustomer

clusterswithinternationalcompetitiveness,andstrivestobuildShougangCo.intoasteellistedcompanywithglobalcompetitivenessandinfluence.

3.Operatingplansof2025Theyear2025isthecriticalyeartofurtherpromotethedeepeningreformoftheenterprise,continuetoimprovethe“manufacturing+service”capabilitiesandrealizehigh-qualitydevelopment.TheCompanyfirmlygraspsthedevelopmentrequirementsofthenewqualityproductivityandstrivestocompletetheannualtargettaskswithabreakoutposture,reforminitiativesandinnovativeapproachestocontinuouslyimproveoperationalefficiency,businessqualityandassetquality.

(1)OutputofproductsSteelproductionreached22.59milliontons,ayear-on-yeardecreaseof2.6%.Amongthem:

①QiangangCo.:8.88milliontonsofsteel,ayear-on-yeardecreaseof0.9%.

②JingtangCo.:13.96milliontonsofsteel,ayear-on-yeardecreaseof1.9%.

③ZhixinCo.:2.1milliontonsofelectricalsteel,ayear-on-yearincreaseof5.7%.

④Cold-RCo.:cold-rolledsheetmetalreached1.88milliontons,ayear-on-yearincreaseof0.8%.

(2)BudgetarrangementforfinancialindicatorsRMB108.08billionforoperatingrevenue,year-on-yeardecreaseof0.21%.Amongthem:RMB35.47billionforoperatingrevenueofparentcompany,year-on-yeardecreaseof3.62%;RMB65billionforoperatingrevenueofJingtangCo.,year-on-yearincreaseof0.52%;RMB14.5billionforoperatingrevenueofZhixinCo.,year-on-yearincreaseof1.10%;RMB9.5billionforoperatingrevenueofCold-RCo.,year-on-yeardecreaseof

2.75%;RMB0.78billionforoperatingrevenueofSteelTrading,year-on-yeardecreaseof31.91%.

(3)BudgetarrangementforcashflowRMB152.914billionforcashinflows,includingRMB120.881billionforcashinflowfromoperatingactivities,RMB41millionforcashinflowfrominvestingactivities,andRMB31.992billionforcashinflowfromfinancingactivities.RMB151.289billionforcashoutflows,includingRMB110.271billionforcashoutflowfromoperatingactivities,RMB4.544billionforcashoutflowfrominvestingactivities,andRMB36.473billionforcashoutflowfromfinancingactivities.Attheendoftheyear,thebalanceofcashatbankandonhandwasRMB14.407billion,andthebalanceofinterest-bearingliabilitiesisRMB34.947billion.

(4)BudgetarrangementforfixedassetsprojectcapitalexpenditureArrangementoffixedassetsinvestmentisRMB4.126billion,including:RMB1.899billionforQiangangCo.,RMB1.847billionforJingtangCo.,RMB302millionforZhixinCo.,RMB65millionforCold-RCo.,andRMB11millionforSteelTrading.

4.Potentialrisk

(1)PolicyandindustryriskSteelenterpriseswillfacethedoublepressureofpolicytighteningandindustrialtransition.Ontheonehand,thesituationofovercapacityintheironandsteelindustrywillnotchangeintheshortterm,andthecompetitiveenvironmentoftheindustryisstillsevere;ontheotherhand,thecarbonpeakcarbonneutralpolicy,environmentalprotection,productionrestrictionsandotherpolicyfactorswillbringmorepressureontheoperationofenterprises.

Tocopewiththeaboverisks,firstly,itisnecessarytocloselymonitorthechangesinmacropoliciesandindustrydevelopment,conductin-depthresearchonupstreamanddownstreamindustrychains,strengthenmarketpredictionandanalysis,improverapidresponsecapability,andenhancetheabilitytoresistmarketrisks.Secondly,itisnecessarytostrengthentheconsciousnessofmarketsubjectandbusinessawareness,

strengthenthesynergyofallkindsofbusinesselements,synchronizewithmarketchanges,strengthenthesynergisticdevelopmentofdomesticandforeignmarkets,promotetheexportofadvantageousproducts,andexpandtheinternationalinfluenceofadvantageousproducts.Third,relyingontechnologicalinnovationtocontinuetopromotetheupgradingofproductstructure,andchannelstructure,andactivelypromotetheprojectofhigh-qualitysteelwithnearly“zero”carbonemission,optimizetheproductionprocess,reduceenergyconsumption,strengthenthesynergyoftheproductionline,digdeepintothepotentialoftheusersideofthenewprocess,newusesofthedemandfornewmaterials,andactivelypromotetheaccuratedockingwiththedownstreamhigh-enddemand.Fourth,seizetheopportunityforgreenandlow-carbondevelopment,comprehensivelypromotethewholevarietyoflow-carbonadvantageousproductsandchannelconstructionwork,promotegreenandlow-carbontechnologiesandproducts,andcreateanenterprisegreenandlow-carbonbrand.

(2)Low-carbonenvironmentalrisksIn2025,theironandsteelindustrywillbeincludedinthenationalcarbonmarkettocarryoutcarbontradingcompliance,andtheMinistryofEcologyandEnvironmenthasissuedcarbonemissionaccountingguidelinesandverificationguidelinesfortheironandsteelindustry,whichputforwardhigherrequirementsforannualcarbonemissionreportingandverification;Underthebackgroundof“carbonpeak,carbonneutral”,downstreamcustomershaveputforwardhigherrequirementsforthecompany'scarbonreductionwork;TheEUCarbonBorderAdjustmentMechanism(CBAM)carbontaxisabouttobeformallypaid,whichwillaccordinglyrequiredomesticsteelproductexporterstoprovidemoreaccurateanddetailedcarbonemission-relateddata.

Tocopewiththeaboverisksanddemands,firstly,theCompanywillacceleratetheconstructionofalow-carbonmanagementsystem,promotetheimplementationoflow-carbonactionplans,applycomprehensivecarbonreductiontechnologies,andfocusoncreatinglow-carbonproductdedicatedlinestomeetcustomercarbonreductionneeds.ThesecondistodeepentheconstructionoftheLCAsystem,standardizecarbondatamanagement,improvedataquality,andmeetverificationandcertificationrequirements.Thethirdistocontinuouslybuildalow-carbonsupplychainsystem,selectlow-carbonrawmaterials,andpromotethelow-carbonprocessofprocurement,production,transportation,andotherprocesses.

(3)Horizontalcompetitionrisk

ThereisacertaindegreeofindustrycompetitionbetweentheCompanyanditscontrollingshareholderShougangGroupanditsaffiliates.

Inordertoaddresstheindustry's“CommitmentonMeasurestoResolveIndustryCompetitionandAvoidIndustryCompetitionAfterThisRestructuring”.AccordingtothesteelindustrydevelopmentplanofShougangGroup,ShougangCo.willserveastheonlyplatformforthedevelopmentandintegrationofShougangGroup'ssteelandupstreamironoreresourceindustriesinChina,ultimatelyachievingtheoveralllistingofShougangGroup'ssteelandupstreamironoreresourcebusinessesinChina.Afterwards,ShougangGroupmadefurthercommitmentsbasedontheaforementionedindustrycompetitioncommitments.Thesecommitmentshavebeenfulfilledonschedule,pleaserefertothecorrespondingcontentof"CorporateGovernance"inthisannualreportfordetails.

(5)Relatedtransactionsrisk

RelatedpartytransactionsbetweenShougangCo.andShougangGroupanditsaffiliatedenterprises,ShougangCo.andShougangGroup,signedtheframeworkagreementofrelatedtransactionsinaccordancewiththe“StockListingRules”andotherprovisionsforregularrelatedtransactions.Iftheagreementcannotbestrictlyexecutedinthefuture,theinterestsoftheCompanywillbedamaged,andalsotherisksofrelatedtransactionswillemerge.

TheCompanywillstrictlycomplywithvariousregulationsonrelatedpartytransactions,fulfillinformationdisclosureobligationsinaccordancewiththe“StockListingRules”and“ArticlesofAssociation”,ensuretheopenness,fairness,andimpartialityofrelatedpartytransactions,andsafeguardthelegitimaterightsandinterestsofthecompanyandallshareholders.Theabove-mentioneddailyrelatedpartytransactionsareongoingrelatedpartytransactionsthatexistinthenormaloperationandproductionprocessofthecompany.Bothpartieshavefollowedthelegalapprovalproceduresandsignedinaccordancewithregulations,whichwillnotaffecttheindependenceoftheCompany.XII.Receptionofresearch,communication,interviewandotheractivitiesduringthereportingperiod

√Applicable□Non-applicable

Time

high-endelectricalsteel.

Provideanexplanationoninvestors'concernsaboutproductionregulation,electricalsteelproduction,automotivepaneldemand,andcapitalexpenditures.

XIII.Formulationandimplementationofmarketvaluemanagementsystemandvaluationimprovementplan

WhethertheCompanyhasformulatedamarketvaluemanagementsystem.

□YES√NOWhethertheCompanyhasdisclosedavaluationimprovementplan.

√YES□NO

The“ValuationImprovementPlanofBeijingShougangCo.,Ltd.”hasbeenconsideredandapprovedbytheEighty-fourthBoardofDirectorsMeetingoftheCompany,themaincontentsofwhichareasfollows:(1)Continuouslyimproveprofitabilityandpromotehigh-qualitycorporatedevelopment;(2)Emphasizeinvestor

returnsandsharetheresultsofdevelopment;(3)ImproveinvestorcommunicationandconveytheCompany'svalue;(4)Improvingthequalityofinformationdisclosureandrespondingtomarketconcerns;(5)ImplementingESGmanagementconceptsandimprovingthelevelofgovernance;(6)Exploringdiversifiedformsofincentivesandpromotinglong-termincentivemechanisms;and(7)Encouragingmajorshareholderstoincreasetheirholdingsandboostingmarketconfidence.Thespecificcontentisdetailedinthe1March2025publicannouncementoftheCompany'sBoardofDirectors.

XIV.ImplementationoftheActionPlanfor"DoubleImprovementofQualityandReturn”

WhethertheCompanydisclosedanactionplanfor"dualimprovementofqualityandreturn"ornot.

√YES□NO

On30September2024,theCompanydisclosedthe“AnnouncementofBeijingShougangCo.,Ltd.ConcernedwiththeActionPlanof‘DualImprovementofQualityandReturns’(hereinafterreferredtoasthe‘ActionPlan’)”.Itmainlyincludesthefollowingfiveaspects:(1)Focusingonthemainbusiness,promotingtheCompany'shigh-qualitydevelopment;(2)Innovation-driven,fosteringnewqualityproductivity;(3)Technology-first,leadingthewaywithgreenandlow-carbonbenchmarking;(4)System-building,improvingthelevelofESGmanagement;and(5)Shareholder-focused,graduallyimprovingthereturnoninvestment.

Forthespecificmeasures,actionplansandachievementsmadebytheCompanyinimplementingthe“ActionPlan”,pleaserefertothe“Analysisofprincipalbusiness”andotherrelevantcontentsinthissection.

SECTIONIV.CORPORATEGOVERNANCE

I.InformationoncorporategovernanceTheCompanycontinuouslyimprovesitscorporategovernancestructureinaccordancewiththe“CompanyLaw”,“SecuritiesLaw”andotherrelevantlawsandregulations,andhasformedacorporategovernancestructureinwhichtheshareholders'generalmeeting,theboardofdirectors,thesupervisoryboardandthemanagementareseparatedfromeachother,andmutualchecksandbalanceshavebeenestablished,sothateachlevelhasitsowndutiesandresponsibilitieswithinitsrespectivescopeofdutiesandcompetence,whichensuresthestandardizedoperationoftheCompany,andeffectivelysafeguardsthelawfulrightsandinterestsoftheCompanyandallshareholders.Duringthereportingperiod,theCompanyfocusedonthefollowingaspectsofcorporategovernance:

Firstly,accordingtothe“OpinionsoftheGeneralOfficeoftheStateCouncilontheReformoftheSystemofIndependentDirectorsofListedCompanies”,"AdministrativeMeasuresforIndependentDirectorsofListedCompanies”,“ListingRulesofShenzhenStockExchange”,and“Self-regulatoryGuideforListedCompaniesofShenzhenStockExchangeNo.1-StandardizedOperationofMainBoardListedCompanies”andotherlaws,regulations,rulesandnormativedocuments,andcombinedwiththeactualoperation,formulated24rulesandregulations,including"RegulationsontheWorkofSpecializedMeetingsofIndependentDirectors"and"DataSecurityManagementSystem",revised109rulesandregulations,including“ArticlesofAssociation”,“RulesofProcedureoftheBoardofDirectors”,and“RulesoftheIndependentDirectors”,toimprovethelevelofcorporategovernance;Secondly,inviewoftheactualsituation,suchasupdatingtherulesandoperationaladjustments,theinternalcontrolself-evaluationisorganizedinaccordancewiththe“RiskControlManual”andthe“InternalControlEvaluationManual”.Thethirdiscenteredontherequirementsofcompliancemanagement,contractmanagementandlegalmanagement,revisingthe“threelibrariesofcompliance”,focusingonsystemspecifications,keyareasandoperationmechanisms,formingacompliancemanagementsystemwithclearauthorityandresponsibility,effectiveoperationandcloseintegrationwithbusinessandriskcontrol,andpassingthestandardcertificationofGB/T35770-2022/ISO37301:2021oftheComplianceManagementSystem.ThefourthisinaccordancewiththerelevantprovisionsoftheArticlesofAssociationandtheRulesofProcedureoftheShareholders'Meeting,theshareholders'meetingshallbeconvenedthrough"on-site+onlinevoting"toensurethatthematterssubmittedforreviewandapprovalbytheshareholders'meetingareincompliancewiththelaw.

Attheendofthereportingperiod,theCompanyhasatotalof505regulations,amongwhich501regulationsareformulatedandimplementedbythecompanyand4regulationsareforwardedtothegovernmentandregulatoryauthorities.

WhethertherearematerialdifferencesbetweentheactualstateofcorporategovernanceandtheregulatorydocumentsissuedbytheCSRConthegovernanceoflistedcompanies.

□YES√NOThereisnomaterialdifferencebetweenthefactofcorporategovernanceandtheregulationsforlistingcompaniesrequiredbytheCSRC.II.IndependenceoftheCompanyfromthecontrollingshareholderandactualcontrollerintermsofassets,personnel,finance,organization,andbusiness

TheCompanystrictlyplansandoperatesinaccordancewiththelaw,maintainingcompleteindependencefromitscontrollingshareholdersintermsofassets,personnel,finance,institutions,andbusiness.Thecompanyhasacompleteprocurement,production,marketing,andbusinessmanagement

system,acompleteproductresearchanddevelopmentorganizationandpersonnel,andtheabilitytoindependentlyproduceandoperate.

1.Assets:TheCompanyhasaproductionsystemandsupportingfacilitiesthatareindependentofthecontrollingshareholderanditsrelatedparties.TheCompany'sassetsareindependentandcomplete,withclearownership.

2.Personnel:TheCompanyhasacompletehumanresourcesmanagementsystem,whichoperatesindependentlyandhasasoundandeffectivesystem.ThedirectorsandsupervisorsoftheCompanyareelectedinaccordancewiththestatutoryapprovalprocedures,suchasshareholders'meetingsorcorrespondingdemocraticelections;seniormanagementpersonnelareappointedordismissedbytheBoardofDirectors,andtherearenoirregularitiesintheirconcurrentpositionswithcontrollingshareholdersandrelatedparties.

3.Financial:TheCompanyhasanindependentfinancialmanagementdepartment,equippedwithfull-timefinancialpersonnel,withacompleteinternalfinancialaccountingandmanagementsystem,andaperfectfinancialmanagementsystem,whichissoundandcapableofmakingindependentfinancialdecisions,andtheCompanyisindependentlyandlegallysubjecttotaxation.

4.Institutions:TheCompanyhasageneralmeetingofshareholders,theboardofdirectors,theboardofsupervisors,managers,andothercorporategovernancestructures,acompleteorganizationalsystem,independentoperation,andindependentexerciseofpower.Andthereisnosubordinaterelationshipwiththecontrollingshareholderanditsrelatedparties.

5.Business:TheCompanyhasacompleterawfuelprocurement,productmanufacturing,productmarketing,andmanagementsystem,anindependentbusinesssystem,conductsitsbusinessindependently,operatesindependently,andbearsitsownrisks.

III.Horizontalcompetition

√Applicable□Non-applicable

Type

conversiontolisting.

IV.Generalshareholders’meetingsandextraordinaryshareholders’generalmeetingsduringthereportingperiod

1.Informationonthegeneralshareholdersmeeting

disclosureofthemeetingresolution

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√Non-applicable

V.Directors,Supervisors,SeniorManagementI.Generalinformation

Hiyu

Total

Duringthereportingperiod,didanydirectorsandsupervisorsresignandwasanymembersoftheseniormanagementresignedduringtheirtermofoffice

√YES□NOFordetails,pleasereferto"Changesindirectors,supervisorsandseniormanager".Changesindirectors,supervisorsandseniormanager

√Applicable□Non-applicable

II.Currentposition

Professionalbackground,mainworkexperienceandmainresponsibilitiesofthecurrentdirector,supervisors,andseniormanageroftheCompanyA.Boardmembers

1.QiuYinfu:ThechairmanoftheCompany,Universitydegree,MasterofBusinessAdministrationinSeniorManagement,SeniorEngineer.FormerlyservedastheheadoftheMotorizedSectionofShougangSecondSteelmakingPlant;theheadofShougangOxygenPlant;andtheheadoftheColdRollingOperationDepartmentofShougangQiangangCompany;DeputyGeneralManager,DirectorofColdRollingOperationsDepartmentandSecretaryofPartyCommitteeofShougangQiangangCompany;Chairman,DeputySecretaryofPartyCommitteeandGeneralManagerofBeijingShougangColdRollingCo.,Ltd.;DeputySecretaryofthePartyCommittee,ChairmanoftheLaborUnionandDeputyGeneralManagerofBeijingShougangCompanyLimited,andSecretaryofthePartyCommitteeofQian'anIron&SteelCompanyofShougangCompanyLimited;SecretaryofthePartyCommitteeandChairmanoftheBoardofDirectorsofShougangJingtangIron&SteelUnitedCo.,Ltd.andDirectorofBeijingShougangCompanyLimited;DeputySecretaryofthePartyCommitteeandDirectorofShougangGroupCompanyLimitedandDirectorofBeijingShougangCompanyLimited;DeputySecretaryofthePartyCommittee,DirectorandChairmanoftheLaborUnionofShougangGroupCompanyLimited,DirectorofBeijingShougangCompanyLimited;DeputySecretaryofthePartyCommittee,DirectorandChairmanoftheLaborUnionofShougangGroupCo.,Ltd.,DeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofShougangGroupCo.,Ltd.ThecurrentDeputySecretaryofthePartyCommittee,Director,andGeneralManagerofShougangGroupCo.,Ltd.,andChairmanofBeijingShougangCo.,Ltd.

2.SunMaolin:Director,Universitydegree,MasterofBusinessAdministrationinSeniorManagement,SeniorEngineer.FormerlyservedasdeputyheadofthetechnicalandscientificresearchdepartmentinShougangMediumandThickPlatePlant;DeputyDirectorofSiliconSteelDivision(presidingoverthework)ofShougangQiangangCo.;DeputyDirectorofSiliconSteelDivision(presidingoverthework)inShougangQian'anIron&SteelCo.,Ltd.;DirectorofSiliconSteelDivisioninBeijingShougangCompanyLimited;SecretaryofthePartyCommitteeandDirectoroftheSiliconSteelDivisionofBeijingShougangCompanyLimited;SecretaryofthePartyCommitteeandDirectoroftheSiliconSteelDivisionofBeijingShougangCompanyLimited,DirectoroftheSiliconSteelEngineeringandTechnologyResearchCenter;AssistanttoGeneralManagerofBeijingShougangCompanyLimited,SecretaryofPartyCommitteeandDirectorofSiliconSteelDivision,DirectorofSiliconSteelEngineeringandTechnologyResearchCenter;DeputyGeneralManagerofBeijingShougangCompanyLimited,DirectorofSiliconSteelEngineeringandTechnologyResearchCenter,SecretaryofthePartyCommitteeandExecutiveDirectorofShougangZhixinElectromagneticMaterials(Qian'an)Co.,Ltd.;MemberofthePartyCommitteeandDeputyGeneralManagerofBeijingShougangCompanyLimited,DirectorofSiliconSteelEngineeringandTechnologyResearchCenter,ChairmanofShougangZhixinElectromagneticMaterials(Qian'an)Co.,Ltd.;MemberofthePartyCommitteeandDeputyGeneralManagerofBeijingShougangCompanyLimited,DeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenter,ExecutiveDirectorandGeneralManagerofBeijingShougangSteelTradingInvestmentManagementCo.,Ltd.,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.;DeputySecretaryofthePartyCommitteeandGeneralManagerofBeijingShougangCompanyLimited,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.TheCurrentDeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofBeijingShougangCompanyLimited.

3.LiMing:Director,Doctoraldegree,DoctorofEngineering,ProfessorateSeniorEngineer.Formerlyservedas,deputydirectoroftechnologyandscienceresearchdepartmentofShougangThirdSteelmakingPlant(Chief);DeputyDirectorofTechnicalQualityDivisionofShougangQiangangCompany;DeputyGeneralManagerofShougangQian'anIron&SteelCo.,Ltd.;DeputySecretaryofthePartyCommitteeandDirectoroftheMarketingManagementDepartmentofBeijingShougangCompanyLimited;DeputyGeneralManager,DeputySecretaryofthePartyCommitteeandDirectoroftheMarketingManagementDepartmentofBeijing

ShougangCompanyLimited;DirectorandDeputyGeneralManager,DeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenterofBeijingShougangCompanyLimited;DeputyGeneralManager,DeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenterofBeijingShougangCompanyLimited;DeputyGeneralManagerofBeijingShougangCompanyLimited,DeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenter,ExecutiveDirectorandGeneralManagerofBeijingShougangSteelTradingInvestmentManagementCo.,Ltd.;DeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofShougangJingtangUnitedIron&SteelCo.,Ltd.;SecretaryofthePartyCommitteeandChairmanoftheBoardofDirectorsofShougangJingtangUnitedIron&SteelCo.,Ltd.TheCurrentDirectorofBeijingShougangCompanyLimited,SecretaryofthePartyCommitteeandChairmanoftheBoardofDirectorsofShougangJingtangUnitedIron&SteelCo.,Ltd.

4.LiJiantao:ThedirectoroftheCompany,theintermediateeconomistwithaBachelor'sDegree.ThemainemploymenthistoryofMr.Liisasfollows:Mr.LiusedtobeamemberofFinanceDepartmentofBaosteelGroupShanghaiNo.1IronandSteelCo.,Ltd.,amemberofFinanceDepartmentofShanghaiNo.1IronandSteelCo.,Ltd.,amemberofassetManagementSection,DeputyDirectorofFinanceDepartmentandDeputyDirectorofFinanceDepartmentofBaosteelGroupShanghaiNo.1IronandSteelCo.,Ltd.,adeputydirectorofFinanceDepartmentandDeputyDirectorofTransportationReformDepartmentofBaosteelGroupShanghaiNo.1IronandSteelCo.,Ltd.,SeniorManagerofexpenseManagementofOperatingFinanceDepartmentofBaosteelGroup(HeadOffice),SeniorManagerofexpenseManagementofOperatingFinanceDepartmentofChinaBaowuIronandSteelGroupCo.,LLtd.,SeniorManagerofFundManagementofFinanceDepartmentofChinaBaowuIronandSteelGroupCo.,LLtd.,andFundDirectorofFinanceDepartmentofChinaBaowuIronandSteelGroupCo.,Ltd.Currently,Mr.LiisdirectorofcapitalOperationDepartmentandCapitalOperationCenterofChinaBaowuIronandSteelGroupCo.,Ltd.,anddirectorofBeijingShougangCo.,Ltd.

5.YuXingxi:TheindependentdirectoroftheCompany.Graduatedegree,MasterofManagement,SeniorAccountant.Formerlyservedasasoldierinthe1stCompanyofthe46thRegimentofthe10thDivisionoftheRailway,accountantintheQinghaiTibetLineoftheRailway(platoon),accountantintheFinanceDepartmentoftheNewManagementDepartmentofthe10thDivisionoftheRailway,DeputyPresidentoftheConstructionDepartment(Zhengke)oftheRailway20thBureau,GeneralManagerandAccountantoftheConstructionDepartmentoftheRailway20thBureau,GeneralManagerandSeniorManageroftheFinanceDepartmentofChinaRailwayConstructionCorporation,DeputyDirectoroftheFinanceDepartmentandDirectorandSeniorManagerinFundSettlementCenterofChinaRailwayConstructionCorporation,MinisterandSeniorManageroftheFinanceDepartmentofChinaRailwayConstructionCorporation,MinisterandSeniorManageroftheFinanceDepartmentofChinaRailwayConstructionCorporationLimited,SecretaryoftheBoardofDirectorsandJointCompanyofChinaRailwayConstructionCorporation,NewsSpeakerandSeniorManagerofChinaRailwayConstructionCorporation,TheSecretaryGeneraloftheBeijingListedCompaniesAssociationandProfessorattheSchoolofEconomicsandManagementofBeijingJiaotongUniversity,healsoservesasanindependentdirectorofRuitaiTechnologyCo.,Ltd.,BeijingKeruiInternationalCo.,Ltd.,andChinaNationalPharmaceuticalGroupCo.,Ltd.CurrentindependentdirectorofRuitaiTechnologyCo.,Ltd.andindependentdirectorofChinaNationalPharmaceuticalGroupPharmaceuticalCo.,Ltd.AppointedasanindependentdirectorofBeijingShougangCompanyLimitedon23December2022.

6.LiuShen:TheindependentdirectoroftheCompanywithadoctoraldegree.ThemainemploymenthistoryofMr.Liuisasfollows:OnceservedasanemployeeoftherealestatecreditdepartmentofShanghaiBranchofChinaConstructionBank,ShanghaiStockExchange,andShanghaiXinfugangRealEstateDevelopmentCo.,Ltd.ThecurrentseniorconsultantofBeijingZhuowei(Shanghai)LawFirm,andindependent

directorofGuizhouGuotaiLiquorCo.,Ltd.(unlistedcompany)andChinaNationalMedicinesCorporationLtd.wasappointedasanindependentdirectorofBeijingShougangCompanyLimitedon23June2020.

7.PengFeng:TheindependentdirectoroftheCompany,aseniorengineerwithamaster'sdegree.ThemainemploymenthistoryofMr.Pengisasfollows:Mr.Pengonceservedasassistantengineer,engineeranddeputydirectoroftheSmeltingRawMaterialsDepartmentofMetallurgicalIndustryPlanningandResearchInstitute,chiefdesignerandvicedirectorofSmeltingRawMaterialsDepartmentofMetallurgicalIndustryPlanningandResearchInstitute,chiefdesigneranddirectorofSmeltingRawMaterialsDepartmentofMetallurgicalIndustryPlanningandResearchInstitute.Atpresent,Mr.PengisvicechiefengineeroftheMetallurgicalIndustryPlanningandResearchInstitute,directoroftheSmeltingRawMaterialsDepartment,permanentcouncilmemberoftheChinaNonferrousMetalsIndustryAssociation,andvicechairmanoftheferroalloybranchofChinaSocietyforMetals.AppointedasanindependentdirectorofBeijingShougangCompanyLimitedon23June2020.

8.WangCuimin:IndependentDirector,Postgraduatedegree,SeniorEngineer,AssetAppraiser,LandAppraiser,EnterpriseRiskInternalController.FormerlyservedastheprojectmanagerinZhongjiAuditFirm,thevicepresidentofBeijingChineseEnterpriseChinaAssetsEvaluationCo.,Ltd.,thedirectorandvicepresidentofBeijingHuaxiaTaohoeInternationalInvestmentManagementCompanyLimited,thepartnerofZhitongConsulting(Beijing)Co.,Ltd.,theindependentdirectorofNanjingIron&SteelCo.,Ltd.,theexternalpurchasingexpertofChinaDevelopmentBank,theauditingexpertoftheassetappraisalreportofChinaNationalAviationFuelGroupCorporation,theappraisalexpertoftheNanfangUnitedPropertyRightExchangeCenter.ThecurrentexternalpurchasingexpertofChinaDevelopmentBank,theauditingexpertoftheassetappraisalreportofChinaNationalAviationFuelGroupCorporation,theappraisalexpertoftheNanfangUnitedPropertyRightExchangeCenter,theauditingexpertoftheassetevaluationreportofChinaPOLYGroupCorporationLimited,andthevicepresidentofBeijingChineseEnterpriseChinaAssetsEvaluationCo.,Ltd.AppointedasanindependentdirectorofBeijingShougangCompanyLimitedon22February2024.

(2)Supervisors

1.SunYi:ThechairmanofthesupervisoryBoardoftheCompany,asenioreconomistwithadoctoraldegreeinEconomics.ThemainemploymenthistoryofMr.Sunisasfollows:AcadreofmachineryworkshopofChangchunBusFactoryinJilinProvince,adeputydirectorstaffofJilinProvincialLaborDepartmentlaborManagementOffice,deputysecretaryoftheSecretariatofJilinProvincialGovernmentGeneralOffice,directoranddeputygeneralmanagerofTonghuaIron&SteelCo.,Ltd.,MemberoftheStandingCommitteeofthePartyCommitteeandDeputyGeneralManagerofTonghuaIron&SteelCo.,Ltd.,SecretaryofthePartyCommittee,DirectorandDeputyGeneralManagerofTonghuaIron&SteelCo.,Ltd.,SecretaryofthePartyCommittee,Director,SecretaryoftheDisciplineInspectionCommittee,ChairmanoftheLaborUnionandDeputyGeneralManagerofTonghuaIron&SteelCo.,Ltd..

Mr.SuniscurrentlytheDirectoroftheWorkOfficeoftheSupervisoryBoardofShougangGroupCo.,Ltd.,andtheChairmanoftheSupervisoryBoardofBeijingShougangCo.,Ltd.

2.DaiJun:Supervisor,UniversityDegree,MasterofEngineering,SeniorAccountant,CertifiedPublicAccountant.FormerlyservedasadesignerintheMiningMachineryDesignLaboratoryofBeijingShougangDesignInstitute,anaccountant,assistanttothedirector,deputydirectoranddirectoroftheFinanceDepartmentofBeijingShougangDesignInstitute,directoroftheFinanceDepartmentofBeijingShougangInternationalEngineeringTechnologyCo.,Ltd.,chieffinancialofficerandheadofthefinancedepartmentofBeijingShougangInternationalEngineeringTechnologyCo.,Ltd.,anddirectoroftheAuditDepartmentinShougangGroupCo.,Ltd.Mr.DaiiscurrentlythedirectoroftheAuditDepartmentofShougangGroupCo.,Ltd.,andthesupervisorofBeijingShougangCo.,Ltd.

3.ChangHaiyu:ThesupervisoroftheCompany,anintermediateeconomistwithamaster'sdegree.ThemainemploymenthistoryofMr.Changisasfollows:HewasseniormanageroftheFinancingManagementDepartmentofBeijingState-ownedCapitalOperationManagementCo.,Ltd.,seniormanagerofthekeyAccountDepartmentoftheheadofficeofZheshangBankCo.,Ltd.,andassistanttothegeneralmanagerofCapitalOperationDepartmentofBeijingFinancialHoldingGroupCo.,Ltd.Currently,heistheinvestmentdirectorofBeijingJingguoruiEquityInvestmentFundManagementCo.,Ltd.,andthesupervisorofBeijingShougangCo.,Ltd.

4.WangXingtao:TheemployeerepresentativesupervisoroftheCompany,aseniormarketerwithabachelor'sdegree.ThemainemploymenthistoryofMr.Wangisasfollows:HeusedtobeamemberofthesupplyandMarketingDepartmentofShougangFirst-lineMaterialFactory,asalesmanoftheSalesDepartmentofthehigh-qualityProfileSalesDepartmentofShougangSalesCompany,aresearcherofthepriceManagementDepartmentoftheMarketingManagementDepartmentofShougangSalesCompany,deputychiefofPriceManagementDepartmentofMarketingManagementDepartmentofShougangSalesCompany(probationperiodofoneyear),deputychiefofPriceManagementDepartmentofMarketingManagementDepartmentofShougangSalesCompany,andaprofessionalmanagerofmarketingManagementOfficeofMarketingManagementDepartment.Currently,heistheprofessionalmanagerofthemarketingOfficeoftheMarketingManagementDepartmentoftheMarketingCenterandtheemployeerepresentativesupervisorofBeijingShougangCo.,Ltd.

5.QuErlong:TheemployeerepresentativesupervisoroftheCompany,aseniormarketerwithabachelor'sdegree.ThemainemploymenthistoryofMr.Quisasfollows:Mr.QuworkedasaworkerinShougangHigh-speedWireMill,ShougangEquipmentMaintenanceCenter,QiangangCo.EquipmentMaintenanceCenter,QiangangCompanyEquipmentMaintenanceCenter,BeijingShougangCo.,Ltd.EquipmentDepartment,hot-rollingOperationDepartment.Currently,heisaclampmanintheequipmentroomoftheHot-rollingOperationDepartmentofBeijingShougangCo.,Ltd.andanemployeerepresentativesupervisorofBeijingShougangCo.,Ltd.

(3)Seniormanagers

1.SunMaolin:GeneralManager,Universitydegree,MasterofBusinessAdministrationinSeniorManagement,SeniorEngineer.FormerlyservedasadeputyheadofthetechnicalandscientificresearchdepartmentinthetechnicaldepartmentofShougangMediumandThickPlatePlant;DeputyDirectorofSiliconSteelDivision(presidingoverthework)inQiangangCo.;DeputyDirectorofSiliconSteelDivision(presidingoverthework)inShougangQian'anIron&SteelCo.,Ltd.;DirectorofSiliconSteelDivisioninBeijingShougangCompanyLimited;SecretaryofthePartyCommitteeandDirectoroftheSiliconSteelDivisionofBeijingShougangCompanyLimited;SecretaryofthePartyCommitteeandDirectoroftheSiliconSteelDivisionofBeijingShougangCompanyLimited,DirectoroftheSiliconSteelEngineeringandTechnologyResearchCenter;AssistanttoGeneralManagerofBeijingShougangCompanyLimited,SecretaryofPartyCommitteeandDirectorofSiliconSteelDivision,DirectorofSiliconSteelEngineeringandTechnologyResearchCenter;DeputyGeneralManagerofBeijingShougangCompanyLimited,DirectorofSiliconSteelEngineeringandTechnologyResearchCenter,SecretaryofthePartyCommitteeandExecutiveDirectorofShougangZhixinElectromagneticMaterials(Qian'an)Co.,Ltd.;MemberofthePartyCommitteeandDeputyGeneralManagerofBeijingShougangCompanyLimited,DirectorofSiliconSteelEngineeringandTechnologyResearchCenter,ChairmanofShougangZhixinElectromagneticMaterials(Qian'an)Co.,Ltd.;MemberofthePartyCommitteeandDeputyGeneralManagerofBeijingShougangCompanyLimited,DeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenter,ExecutiveDirectorandGeneralManagerofBeijingShougangSteelTradingInvestmentManagementCo.,Ltd.,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.;Deputy

SecretaryofthePartyCommitteeandGeneralManagerofBeijingShougangCompanyLimited,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.TheCurrentDeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofBeijingShougangCompanyLimited.

2.ZhaoPeng,DeputyGeneralManager,Universitydegree,MasterofEngineering,Economist.FormerlyservedasheadofthePlanningDepartmentinthePlanningandFinanceDivisionoftheShougangEconomyandTradeDepartment;DeputyDirectorofthePlanningDepartmentinthePlanningandFinanceDivisionofShougangNewSteelSalesCompany;HeadofMarketingPlanningDepartmentintheMarketingManagementDivisionofShougangCorporationSalesCompany;ChiefofAutomobilePlateSalesDepartmentandChiefofManagementDepartmentintheColdRolledPlateSalesDivisionofShougangCorporationSalesCompany;DeputyManageroftheShanghaiSalesBranchofShougangCorporationSalesCompany(Directorassistantlevel);DeputyDirectorandPartySecretaryoftheMarketingManagementDivisionofShougangCorporationSalesCompany(NominalDeputyDivisionLevel);DeputyDirectoroftheMarketingManagementDivisionofShougangNewSteelSalesCompany(NominalDeputyDirectoroftheMarketResearchDepartmentofChinalronandSteelAssociation);DeputyDirectoroftheAutomobilePlateSalesDivisionofShougangCorporationSalesCompany(presidingoverthework);GeneralmanagerofTianjinShougangSteelTradingCo.,Ltd.(ShougangTianjinSalesBranch)(directorlevel);DeputyDirectorofMarketingManagementDepartmentofBeijingShougangCompanyLimited;DeputyGeneralManagerofMarketingCenterofBeijingShougangCompanyLimited;MemberofthePartyCommitteeandDeputyGeneralManagerofMarketingCenterofBeijingShougangCompanyLimited;MemberofthePartyCommitteeandDeputyGeneralManagerofMarketingCenterofBeijingShougangCompanyLimitedandDirectorofAutomobilePlateSalesDepartment;DeputySecretaryofthePartyCommittee,DirectorandGeneralManagerofChinaShougangInternationalTrade&EngineeringCorporation;DeputySecretaryofthePartyCommitteeandGeneralManagerofMarketingCenterofBeijingShougangCompanyLimited;DeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenterofBeijingShougangCompanyLimited.ThecurrentDeputyGeneralManagerofBeijingShougangCompanyLimited,theDeputySecretaryofthePartyCommitteeandGeneralManageroftheMarketingCenter,theExecutiveDirectorandGeneralManagerofBeijingBeijingShougangSteelTradingInvestmentManagementCompanyLimited,andtheDirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.

3.LiuTonghe:TheChiefAccountantoftheCompany,UniversityDegree,SeniorAccountant.FormerlyservedastheFinancingAdministratoroftheFinanceDepartmentofShougangCorporation,theChiefManagerandDeputyDirectoroftheFinanceDepartmentinthePlanningandFinanceDivisionofShougangCorporation(NewSteelCompany),theDirectorofFundManagement(DeputyDirector)oftheOperatingFinanceDepartmentofShougangCorporation,theDirectorofFundManagementoftheOperatingFinanceDepartmentofShougangGroupCo.,Ltd.,theDeputyGeneralManagerofShougangGroupFinanceCo.,Ltd.,andtheSecretaryandDeputyGeneralManagerofthePartyBranchofShougangGroupFinanceCo.,Ltd.andChiefAccountantofBeijingShougangCompanyLimited.TheCurrentChiefAccountantofBeijingShougangCompanyLimited,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.,andDirectorofBeijingShougangColdRollingCo.,Ltd.

4.XieTianwei:DeputyGeneralManager,Universitydegree,MBA,SeniorEngineer.ThemainemploymenthistoryofMr.Xieisasfollows:HewasaninternatShougangMediumThickPlateFactory,directorofproductiontechnologyOfficeHotRollingBranchOperatingAreaAofShougangQiangangCo.,assistanttothedirectoroftheHotRollingOperationDepartmentofShougangQiangangCo.,deputydirectorofHotRollingOperationDepartment,ViceMinisterofProductionDepartment,ViceMinisterofManufacturingDepartmentandViceMinisterofSystemInnovationDepartment,ViceMinisterofManufacturingDepartment

andDirectorofContractPlanningRoomofMarketingCenterofBeijingShougangCo.,Ltd.,AssistanttogeneralmanagerofMarketingCenterofBeijingShougangCo.,Ltd.,director(director)ofContractPlanningOfficeofMarketingManagementDepartment,DeputyDirectorofManufacturingDepartmentofBeijingShougangCo.,Ltd.DeputyGeneralmanagerofBeijingShougangCo.,Ltd.TheCurrentDeputyGeneralManagerofBeijingShougangCo.,Ltd.andtheChairmanofShougangZhixinElectromagneticMaterials(Qian'an)Co.,Ltd.

5.WangKai:ThedeputygeneralmanageroftheCompany,aseniorengineerwithamaster'sdegreeinManagement.ThemainemploymenthistoryofMr.Wangisasfollows:Heusedtobedeputyforemanof1#blastfurnace,deputyforemanof2#blastfurnace,chiefforemanof2#blastfurnace,technicianof2#blastfurnace,deputyforemanof2#blastfurnaceoperationarea,chiefoperatorof1#blastfurnaceoperationarea(one-yearprobation),chiefoperatorof1#blastfurnaceoperationarea,assistantminister(temporaryviceminister)anddeputyminister(inchargeofwork)ofIronMakingDivisionofShouqinCompany.DeputyMinister,Deputyminister(inchargeofwork),andministeroftheIronmakingOperationDepartmentofShougangJingtangCo.,assistanttothegeneralmanagerandheadoftheIronmakingOperationDepartmentofJingtangCo.TheCurrentDeputyGeneralManagerofBeijingShougangCompanyLimited.

6.QiaoYufei:SecretaryoftheBoardofDirectors,ChiefLegalConsultant,Master'sdegree.FormerlyservedasSeniorManagerandVicePresidentoftheInvestmentBankingCommitteeandEquityInvestmentDepartmentofCITICSecuritiesCo.,Ltd;SeniorVicePresidentofChinaMinshengFinancialInvestmentDepartment;GeneralManagerofPostInvestmentManagementandServiceDepartmentofShougangFundCo.,Ltd.,DirectorandGeneralManagerofBeijingShouxiInvestmentManagementCo.,Ltd.,concurrentlyservingasasupervisorofBeijingAutomotiveCo.,Ltd.,directorofShouhuiIndustrialFinancialServicesGroupCo.,Ltd.,directorofBeijingChuangyeIndustrialOperationManagementCo.,Ltd.,supervisorofBeijingShougangGreenFestivalEntrepreneurshipInvestmentCo.,Ltd.,andseniormanageroftheBoardSecretaryOfficeofBeijingShougangCo.,Ltd.,SecretaryoftheBoardofDirectorsofBeijingShougangCompanyLimited;SecretaryoftheBoardofDirectorsandChiefComplianceOfficerofBeijingShougangCompanyLimited,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.;SecretaryoftheBoardofDirectorsandChiefComplianceOfficerofBeijingShougangCompanyLimited,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.andDirectorofBeijingShougangColdRollingCo.,Ltd.TheCurrentSecretaryoftheBoardofDirectorsandChiefComplianceOfficerandLegalConsultantofBeijingShougangCompanyLimited,DirectorofShougangJingtangUnitedIron&SteelCo.,Ltd.andDirectorofBeijingShougangColdRollingCo.,Ltd.?Applicable□Non-applicable

Name

theshareholderoftheCompany

Positioninotherentity

□Applicable√Non-applicableNotesforanypunishmentfromsecuritiesreviewandmanagementauthorities,onresignedorcurrentdirectors,supervisors,andseniormanagerswithinthethreeyears

□Applicable√Non-applicableIII.Remunerationofdirectors,supervisorsandseniormanagement

Decisionmakingprocedure,determinationbasisandactualpaymentofremunerationfordirectors,supervisorsandseniormanagers:

Remunerationfordirectors:theindependentdirectorsoftheCompanycollecttheallowanceofindependentdirectors,andtheallowancestandardofindependentdirectorsisdeterminedbythegeneralmeetingofshareholders;thedirectorwhoconcurrentlyservesasthegeneralmanagerdoesnotcollecttheremunerationofdirectors;directorZenLi(resigned)anddirectorLiMingcollectremunerationinJingtangCo.,whichisnotthedirectorremuneration;otherdirectorsdonotcollectremunerationfromtheCompany.Remunerationforsupervisors:employeerepresentativesupervisorscollectremunerationfromtheCompany,whileothersupervisorsdonotcollectremunerationfromtheCompany.Theemployeerepresentativesupervisorshallberemuneratedaccordingtothepositionofnon-supervisorintheCompany.

Remunerationofseniormanagementpersonnel:TheremunerationofseniormanagementpersonnelsuchasthegeneralmanagershallbeformulatedbytheRemunerationandAssessmentCommitteeoftheBoardofDirectorsoftheCompanyinaccordancewithregulations,andtheAnnualGeneralManagerRemunerationAssessmentandAllocationMethodshallbeformulated.Assessmentandallocationopinionsshallbeproposedbasedonthecompletionofannualtasksanddivisionofresponsibilities,andshallbesubmittedtotheannualboardofdirectorsforreviewandapprovalbeforesettlingandrealizingperformance-basedannualsalaries.Thespecificremunerationsituationfortheyear2024isshowninthetablebelow.

Remunerationofdirectors,supervisors,andseniormanagementduringthereportingperiod

Unit：RMB0,000

theshareholderoftheCompany

Name

XieTianwei

Otherinformation?Applicable?Non-applicableThehigheryear-on-yearincreaseinseniormanagementcompensationwasmainlyduetotheincentiveincomefortheprevioustermbeingrealizedinthe2024assessment.VI.PerformanceofDirectorsduringthereportingperiod

1.Boardmeetingsduringthereportingperiod

2.AttendanceofDirectorsatBoardmeetingsandgeneralmeetings

PengFeng

NoteonfailuretoattendtwoconsecutiveBoardmeetingsinperson

N/A

3.ObjectionsfromDirectorsonrelatedissuesoftheCompanyWhetherthedirectorsraiseanyobjectiontotherelevantmattersoftheCompany

□YES√NODuringthereportingperiod,thedirectorsdidnotraiseanyobjectiontotherelevantmattersoftheCompany.

4.OtherdetailsabouttheperformanceofdutiesbyDirectorsWhetherthedirectors'suggestionsontheCompanyhavebeenadopted

√YES□NO

Explanationoftheadoptionornon-adoptionwithrelatedsuggestionsfromthedirectorsN/AVII.Specialcommitteesundertheboardofdirectorsduringthereportingperiod

Limited

directors,including2independentdirectors

VIII.Performanceofdutiesbythesupervisorycommittee

WhethertheboardofsupervisorsfoundanyrisksintheCompanyduringthesupervisionactivitiesduringthereportingperiod

□YES√NONoneofthoseissuesunderthesupervisionwasobjectedbythesupervisorycommitteeduringthereportingperiod.

IX.PersonneloftheCompany

1.Numberofemployees,professionalcompositionandeducationbackground

2.Remunerationpolicies

ThemiddlemanagementoftheCompanyimplementedtheannualsalarysystem,andtheannualsalarystructureincludesthreeparts:basicannualsalary,performanceannualsalaryandtermincentive.Ofwhich,thebasicsalaryispaidmonthly.Theperformancebonus(70%ofannualsalarystandard)linkstotheperformingdutymonthlyorannually,andannualassessmentandsettlementbasedonthecompletionoftheBusinessObjectiveResponsibilityAgreement.ThetermincentiveshallbeassessedanddistributedattheendoftheterminaccordancewiththeprovisionsoftheTermTargetResponsibilityAgreement,basedonthebusinessandproductionperformanceduringtheterm.

Thesalarysystemoffront-lineandblowstaffiscomposedofoccupationsalaryandbenefitsalary.Theoccupationsalaryisinfluencedbyattendance,andthebenefitsalaryisdistributedasthemonthlyperformanceonduty.

3.Trainingprogram

QianshunBaseandZhixinCo.focusonthequalityimprovementofthethreetalentteamsofbusiness

management,professionalandtechnical,andskilloperation,buildthe“voyage”fulllifecyclecareerdevelopmentsystem,andformanaccuratetrainingnetworkcoveringthewholestaff.Throughqualificationcertification,specialabilityadvancementandcareerdevelopmentchanneldesign,theCompanycustomizestheimplementationofhierarchicaltrainingprogramssuchas“DeepBlueSpecialTrainingCamp”,“High-endCompositeTalentWorkshop”and“CraftsmenLectureHall”,integratingsandtableprojection,casestudies,cutting-edgetechnologyforumsandotherdiversifiedforms,andsystematicallyimprovingthedecision-makingpowerofleaders,theinnovationpoweroftechnicians,andthepracticalpowerofskilledpersonnel.Simultaneouslypromotetheconstructionofaninternaltrainerechelon,pilotaknowledgemanagementplatform,andbuildalearningorganizationcultureof“teachingandlearning”.JingtangCo.improvesthe“fourhorizontalandthreevertical”trainingsystem,focusingonmanagementpersonneltoholdleadershiplecturehallsandleadershipqualificationtrainingtoenhancetheabilityofleaderstoperformtheirdutiesandpoliticalliteracy;focusingonprofessionalmanagementpersonneltocarryoutthequalificationtrainingoffourclasses(regional)operationchiefs,productionorganizationandmanagementtrainingtoenhanceprofessionalstrategicthinking,managementabilityandinnovationconsciousness;focusingontechnicalmanagementpersonneltocarryoutgreenandlow-carboniron-smeltingtechnologytraining,productqualitydataanalysisandmodelingtraining,etc.,todeepenthecultivationofprofessionalknowledgeandtechnicalability;focusingonskilledoperatorstocarryoutvocationalskillsrecognitiontraining,teamleadertraining,etc.,tostrengthenskillsenhancement.Deepenschool-enterprisecooperationtoorganizehigh-endcomplextechnicalpersonneltraining,continuetoreleasetheskillscompetitionplatformtoeducatepeople,strengthentheconstructionoftheinternaltrainerteam,andpromotethetransformationoftrainingeffectiveness.

4.Outsourcingoflaborsource

□Applicable√Non-applicableX.ProposalforprofitdistributionandtransferofcapitalreservetosharecapitalFormulation,ImplementationandAdjustmentofcommonstockProfitDistributionPolicyEspeciallyCashDividendpolicyduringthereportingperiod?Applicable□Non-applicable

1.Sinceitsestablishment,theCompanyhasalwaysvaluedthereturnofinvestorsandsafeguardedthelegitimaterightsandinterestsofallshareholders,especiallythesmallandmedium-sizedshareholders.Inaccordancewiththerequirementsofregulationsandnormativedocumentsissuedbytheregulatoryauthorities,theCompanyhaspromptlyrevisedandimprovedtheprovisionsoftheArticlesofAssociationonprofitdistributionpolicies,andthecriteriaandproportionofcashdividendsareclearandunambiguous.

2.Duringthereportingperiod,theprofitdistributionplanoftheCompanywasincompliancewiththerequirementsoftheArticlesofAssociationinrespectoftheprovisionsonprofitdistributionandwasconsistentwiththeregulationsandnormativedocumentsissuedbytheChinaSecuritiesRegulatoryCommissionandotherregulatorybodies,andhadfulfilledthestatutoryapprovalprocedures.

Specialdescriptionofcashdividendpolicy

TheCompanywasprofitableduringthereportingperiodandtheParentCompany’sprofitavailablefordistributiontoshareholderswaspositive,butnocashdividenddistributionplanwasproposed

□Applicable√Non-applicableProfitdistributionandconversionofcapitalreservesintosharecapitalduringthereportingperiod?Applicable□Non-applicable

Numberofbonussharesper10shares

XI.Implementationoftheequityincentiveplan,employeeshareholdingplanorotheremployeeincentivemeasuresoftheCompany?Applicable□Non-applicable

1.Equityincentive

AccordingtotheReplyonTheImplementationofEquityIncentivePlanforBeijingShougangCo.,Ltd.issuedbytheState-ownedAssetsSupervisionandAdministrationCommissionofBeijingMunicipalPeople'sGovernment(Jingguozi[2021]No.140)andtheresolutionoftheCompany'sfirstinterimgeneralMeetingofshareholdersin2021,theCompanyimplementedthe2021restrictedstockIncentiveplan.64,901,800shareswereissuedto386directors,seniormanagementpersonnel,coretechnicalpersonnel,andmanagementbackbones.Therestrictedstockgrantdateis9December2021,andtherestrictedstockisbookedasof23December2021.

PursuanttotheIncentivePlan,theCompanyrepurchasedandcanceled25,257,565and20,630,585oftheaforesaidrestrictedsharesin2023and2024,respectively,upontheapprovalofthegeneralmeetingofshareholdersoftheCompanyduetotheperformanceassessmentconditionsatthecorporateleveloftheCompanyforindicatorsfailingtomeettheconditionsforthereleaseofrestrictionsduringthereleaseperiodasstipulatedintheIncentivePlanaswellaschangesinpersonnel,andforotherreasons.

Asofthedateofthisannualreport,theremaining19,013,650restrictedsharesundertheIncentivePlanhavenotbeenreleasedfromrestrictedsale.Informationontheshareoptionschemeprovidedtodirectorsandseniormanagementduringthereportingperiod?Applicable□Non-applicable

Unit:share

Name

Evaluationmechanismandincentiveofseniormanagement

Evaluationofseniormanagementpersonnelsuchasthegeneralmanager:Thegeneralmanagerandotherseniormanagementpersonnelimplementanannualsalarysystemconsistingofthreeparts:basesalary,performance-basedannualsalary,andtermincentives.Amongthem:thebasesalaryratiois30%,paidmonthly;Theperformance-basedannualsalaryratiois70%,withamonthlyadvancepaymentof50%.TheannualassessmentandallocationopinionsshallbeproposedbytheCompensationandAssessmentCommitteeoftheBoardofDirectorsoftheCompanyinaccordancewithregulations,basedonthecompletionofannualtasksanddivisionofresponsibilitiesinthe"SalaryAssessmentandAllocationMethodforGeneralManagersandSeniorManagementPersonnel".Afterbeingreviewedandapprovedbytheannualboardmeeting,allperformance-basedannualsalariesshallbesettledandfulfilled;Thetermincentiveisdeterminedbasedonanannualsalarystandardof30%,andwillbeassessedandfulfilledattheendofthetermaccordingtothe"TermTargetResponsibilityAgreement".

2.Implementationofemployeestockownershipplan

□Applicable√Non-applicable

3.Otheremployeeincentivemeasures

□Applicable√Non-applicable

XII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod

1.Constructionandimplementationofinternalcontrolsystem

TheCompanyhasestablishedandimproveditsinternalcontrolsystemandhasrevisedandimproveditinconjunctionwithactualoperations,fullyleveragingitsinstitutionalguaranteerole.Duringthereportingperiod,

theCompanyformulated24regulations,includingtheRegulationsontheWorkofSpecializedMeetingsofIndependentDirectorsandtheDataSecurityManagementSystem,andamended109regulations,includingtheArticlesofAssociation,theRulesofProcedureoftheBoardofDirectorsandtheSystemforIndependentDirectors;asattheendof2024,theCompanyhadatotalof505regulations,ofwhichtheCompanyhadformulatedandimplemented501,andforwarded4fromgovernmentalandregulatoryauthorities.

2.Particularsofmaterialdeficienciesininternalcontroldetectedduringthereportingperiod

□YES√NOXIII.TheCompany’smanagementandcontrolofsubsidiariesduringthereportingperiodN/A

XIV.Self-assessmentreportoninternalcontrolorauditor’sreportoninternalcontrol

1.AppraisalReportofInternalControl

Disclosuredateoffullinternalcontrolevaluationreport

withintheCompanyorlocally,andwillnotattracttheattentionofstakeholders.Violationofcompanyregulationsorconflictswithself-establishedrulesandregulationsmayhavecausedminorsocialimpactandwillnotattracttheattentionofregulatoryauthorities.

2.Auditreportforinternalcontrol

?Applicable□Non-applicable

Auditopiniononinternalcontrol

Whethernon-standardopinionsfromindependentauditorsintheauditreportoninternalcontrol

□YES√NOWhetherthereisconsistentopinionbetweentheauditreportoninternalcontrolandtheself-assessmentreportoninternalcontrol

√YES□NO

XV.Rectificationofproblemsfoundinself-inspectionunderthespecialinitiativeoncorporategovernanceofthelistedcompanyTheCompanyhasnoproblemsfoundinself-inspectionunderthespecialinitiativeoncorporategovernanceofthelistedcompany.

SECTIONV.ENVIRONMENTANDSOCIALRESPONSIBILITY

I.MajorenvironmentalprotectionmattersWhetherthelistedcompanyanditssubsidiariesbelongtothekeypollutantdischargeunitsannouncedbytheEnvironmentalProtectiondepartment

√YES□NO

Environmentalprotectionrelatedpoliciesandindustrystandards

ThepoliciesandindustrystandardsrelatedtoenvironmentalprotectionimplementedbytheCompanyanditssubsidiariesmainlyinclude:EnvironmentalProtectionLawofthePeople'sRepublicofChina,CleanerProductionPromotionLawofthePeople'sRepublicofChina,AirPollutionPreventionandControlLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,EnvironmentalPollutionPreventionandControlLawofthePeople'sRepublicofChinabySolidWaste,NoisePollutionPreventionandControlLawofthePeople'sRepublicofChina,SoilPollutionPreventionandControlLaw,EnvironmentalImpactAssessmentLawofthePeople'sRepublicofChina,RegulationsontheAdministrationofPollutantEmissionPermits,RegulationsofHebeiProvinceonEcologicalandEnvironmentalProtection,Ultra-LowEmissionStandardsofAirPollutantsfortheIronandSteelIndustry,RegulationsofTangshanCityonEcologicalandEnvironmentalProtection,etc.Administrativelicenseforenvironmentalprotection

TheCompanyanditsholdingsubsidiariesadheretotheprincipleofequalemphasisonproductiondevelopmentandenvironmentalprotectionandcarryoutenvironmentalimpactassessmentofconstructionprojectsinstrictaccordancewiththerequirementsofrelevantlawsandregulations,andcarryoutconstructioninstrictaccordancewiththeapprovalsoftheenvironmentalassessmentduringtheimplementationoftheprojecttomeettherequirementsofenvironmentalprotectionmanagement,andtheenvironmentalprotectionapprovalproceduresarecomplete.SewageDischargeLicensesofEnterprisesDischargingSewageareallwithinthevalidityperiod,andallsewagedischargingisdonewithalicenseandcomplywiththelaw.Industrialdischargestandardsanddetailsofthedischargeofpollutantsinvolvedinproductionandbusinessactivities

NameofCompanyor

Subsidiary

machineheadfluegasoutlet,pelletroastingfluegasoutlet,CCPPcombustionexhaustgas,blastfurnacehotblastfurnaceoutlet,steelrollingheatingfurnaceoutlet,whiteashkilnroof,sleevekilnroof

JingtangCo./Jingtang

Base.

dustremoval4dischargeport,7#convertersecondarydustremoval,CCPPcombustionexhaustgas,6#convertersecondarydustremoval,etc.

Treatmentofpollutants

TheenvironmentalprotectionfacilitiesoftheCompanyanditsholdingsubsidiariesforeachproductionprocessareperfectandingoodoperation.QiangangCo.andJingtangCo.arefull-processsuper-lowemissionironandsteelenterprises,andhavebeencontinuouslyevaluatedas“classA”inenvironmentalperformanceevaluation.EachproductionprocessofQiangangCo.isequippedwithperfectenvironmentalprotectionfacilities,andalldustremovalfacilitiesrealizesuper-lowemission.Keypollutionsourcesareequippedwithonlinemonitoringsystemsandnetworkedwithecologicalandenvironmentaldepartments.Theonlinemonitoringsystemismonitoredbyqualifiedmonitoringunitsonaquarterlybasistoensurethatthedataaretrueandreliable.Constructionofsewagetreatmentplantsandwaterdepthdesalinationstations,adoptionof

internationallyadvancedmembranetreatmentprocess,allproductionwastewatertreatmentandrecycling,waterrecyclingrateof98.94%.JingtangCompanybuildscompletedustremoval,desulfurizationanddenitrificationandotherwastegastreatmentfacilities,andefficientlyhandlesallkindsofwastegases;buildscompletewastewatertreatmentfacilities,andtheproductionwastewaterentersintothecomprehensivesewagetreatmentstationforprocessing,andrealizesthecoupledzero-dischargeofwastewater;andbuildscompletesolidwastetreatmentfacilities,andrealizesthecomprehensiveutilizationofthesolidwastematerials.Duringthereportingperiod,allenvironmentalprotectionfacilitiesoperatedwell,andthewholeprocessofeachprocedurereachedthesuper-lowemissionstandard.

TheproductionlineofZhixinCo.isequippedwithdustremoval,denitrificationandotherwastegastreatmentfacilities,allofwhichrealizesuper-lowemissions.Allenvironmentalprotectionfacilitiesareoperatingwell,theemissionconcentrationsofthreepollutants,includingparticulatematter,areatoptimallevels,andtheemissionsarewellbelowthepermittedemissions.Cold-RCo.'spollutionpreventionandcontrolfacilitiesaremaintainedinefficientoperation,industrialdustisdisposedofusingacoatedbagfilter,allpollutantemissionconcentrationsaremaintainedataleadinglevelinChina,andemissionsarewellbelowthepermittedemissions.Environmentalself-monitoringprogramme

TheCompanyanditscontrollingsubsidiarieshaveformulatedpollutantdischargemonitoringplans,establishedandperfectedpollutionsourcemonitoringandinformationdisclosuresystems,andentrustedqualifiedthird-partyorganizationstocarryoutmonitoringinaccordancewiththeMeasuresforSelf-monitoringandInformationDisclosureofNationalKeyMonitoringEnterprisesandotherrelevantregulations,soastoachievea100%completionrateofannualmonitoringanda100%compliancerateofpollutantdischarges.

EmergencyResponsePlanforEnvironmentalEmergencies

TheCompanyanditscontrollingsubsidiarieshaveformulatedandfiledtheEmergencyResponsePlanforEnvironmentalEmergenciesinaccordancewiththerequirementsoftheEnvironmentalProtectionLawofthePeople'sRepublicofChinaandotherlawsandregulations.Accordingtotherequirementsoftheplan,eachenterpriseorganizesandcarriesoutemergencydrillsandtraining,summarizesandevaluatesthedrillsandhandlingthesituation,andensuresthatincaseofemergency,inaccordancewiththerequirementsoftheplan,theimplementationoftheeffectivehandlingofemergenciesandrescueimprovestheskillsofpreventingandhandlingofsuddenenvironmentalincidents,andstrengthenstheabilityofactualpractice.

Environmentalprotectioninputandenvironmentalprotectiontax

TheCompanyanditsholdingsubsidiariescontinuetoimproveenvironmentalprotectionfacilitiesandinvestinenvironmentalprotectionprojectsinaccordancewithrelevantlawsandregulationsandinlightoftheactualproductionsituation,inaccordancewiththerequirementsoftherelevantlawsandregulations.In2024,theamountofinvestmentinenvironmentalmanagementandprotectionisRMB268million,andthespecificsituationofeachenterprise'spaymentofenvironmentalprotectiontax,etc.isasfollows:QiangangCo.paidRMB38.241millionanddeductedRMB4.584million,JingtangCo.paidRMB52.01millionanddeductedRMB8.66million,ZhixinCo.paidRMB0.9828millionanddeductedRMB0.188million,andCold-RCo.paidRMB0.7762millionanddeductedRMB0million.Measurestakentoreduceitscarbonemissionsduringthereportingperiodandtheireffectiveness?Applicable□Non-applicable

TheCompanyactivelyrespondstoclimatechangeandcontinuouslystandardizesitsclimategovernancemanagementsystem.InaccordancewiththeInterimRegulationsontheManagementofCarbonEmission

RightTrading,theNationalClimateChangeAdaptationStrategy2035,China'sPoliciesandActionsforAddressingClimateChangeandotherdocumentsandrequirements,andincloseconnectionwiththeactualsituationoftheCompany,wehaveformulatedaClimateGovernanceManagementSystemandaCarbonEmissionReportingandVerificationManagementSystemtosafeguardthestandardizationoftheworkofclimategovernanceattheinstitutionallevel.Continuouslydeepentheconstructionoftheproductlifecycleassessment(LCA)system,completethecollectionofannualLCAbasicdata,andactivelycarryoutproductcarbonfootprintaccounting.Continuouslypromotetheresearchanddevelopmentandcomprehensiveapplicationofcarbonreductiontechnologies,suchaslarge-ratiopelletsmeltinginblastfurnace,hydrogen-richblowingsmeltinginblastfurnace,andlarge-scrapratiosmeltinginconverters,soastorealizethegreeningandupgradingoftheprocess,andtohelpthelandingofthe“dual-carbon”strategicplan.

Continuousresearchanddevelopmentandcomprehensiveapplicationofcarbonreductiontechnologyforlarge-ratiopelletsmeltinginblastfurnace.TheannualaveragepelletratioofJingtangCo.'slow-carbondedicatedlinesupportingblastfurnacereachedover55%.TheenergyconsumptionoftheCompany'snewlycommissionedbeltroasterpelletproductionlineislessthanhalfofthatofanordinarysinter,whichgreatlyreducesenergyconsumptionandcarbondioxideemissions.

Activelycarryingouttheindustrialtestofhydrogen-enrichedsmeltingwithinjectedcokeovengas,reducingcarbondioxideemissionby9.8kilogramspertonofiron.Atthesametime,JingtangCo.deeplyresearchesthelawanddemandofhighoxygen-enrichedsmeltingoflargeblastfurnace,andinnovativelyutilizesthecombinationmodeof“DeepCooling+VariablePressureAdsorption”oxygenproductionprocess,inwhichtheoxygenproductsofVariablePressureAdsorptionareusedasthepre-machineoxygen-enrichedoxygen,andaresenttotheblastfurnacethroughtheblower,whichhascreatedanewmodeofmixingandsupplyingofoxygentotheindustry'slarge-scaleblastfurnacesbeforeandafterthemachine.Underthepremiseofmeetingthedemandforhighoxygenenrichmentintheblastfurnace,theenergyconsumptionofoxygenforironmakinghasbeenminimized.

Conductedconverterlargescrapratiosmelting.TheCompanyorganizesandcarriesoutexperimentsonlargescrapratioofconverter,realizescontinuousproductionofthewholecastingwitha50%scrapratio,andhastheabilitytomassproduceproductswithacarbonfootprintreducedbymorethan40%,andthelow-carbonproductscoverautomobileplates,householdapplianceplates,high-strengthsteel,tin-platedplatesandsoon.

TheCompanyconductscutting-edgelow-carbonresearch.Continuouslyfocusingonlow-carbonironmakingprocessinnovation,theCompanyactivelypromotestheresearchanddevelopmentandcomprehensiveapplicationofcarbonreductiontechnologies,suchascarbondioxidecaptureandutilizationandsteelslagcarbonizationtechnology.QiangangCo.hascompletedthe100-toncontinuousblowingindustrialtestofbiomasshydrogen-richmicropowder,andplanstocontinuetocarryouttheamplifiedblowingtestofbiomasshydrogen-richmicropowder;thebestcarbonsequestrationeffectofthepilottestofsteelslagcarbonizationtechnologyreaches20%.JingtangCo.activelyexplorescarryingoutcarbondioxidecapturetestofblastfurnacegas,andplanstosetupa3000m?/hindustrialtestplantforcarbondioxidecaptureofblastfurnacegas.

Administrativepenaltiesimposedduetoenvironmentalproblemsduringthereportingperiod

Duringthereportingperiod,neithertheCompanynoritsholdingsubsidiarieswerepunishedbyregulatoryauthoritiesinrespectofenvironmentalprotection.Atthesametime,theCompanyurgestheshareholdingcompaniestoabidebytheEnvironmentalProtectionLawofthePeople'sRepublicofChinaandotherlaws,regulations,rulesandnormativedocuments.

Otherenvironmentalinformationthatshallbedisclosed

Onthebasisofadheringtotheworkofenvironmentalprotection,theCompanyanditsholdingsubsidiariesregularlyreleaseenvironmentalprotectioninformationonthenationalkeymonitoringenterpriseself-monitoringinformationdisclosureplatforminaccordancewiththerequirementsoftheenvironmentalprotectiondepartment,andactivelyacceptsocialsupervision.Otherenvironmentalprotectionrelatedinformation

Inordertodevelopacirculareconomyandlow-carboneconomy,buildresource-saving,environment-friendlyandlow-carbonorientedenterprises,andachievesoundandrapiddevelopmentoftheCompany,theCompanystartedthepreparationoftheenvironmentalresponsibilityreportattheendof2016,coveringthepreparationscopeofQiangangCo.,JingtangCo.,ZhixinCo.andCold-RCo.andothersubsidiaries.InApril2024,theCompany'swebsite(http://www.sggf.com.cn)releasedthe2023AnnualEnvironmentalResponsibilityReportofBeijingShougangCo.,Ltd.II.Socialresponsibility

TheCompanyhasindependentlypreparedthe"2024SustainableDevelopmentReport"andsubmitteditforreviewatthe15thmeetingofthe8thBoardofDirectors.Thespecificcontentisdetailedinthecompanyannouncementon18April2025.III.Consolidateandexpandtheachievementsofpovertyalleviationandruralrevitalization

TheCompanyactivelyfulfillsitssocialresponsibilities,expandstheachievementsofpovertyalleviation,implementspovertyalleviationthroughconsumption,andcomprehensivelyhelpsruralrevitalization.In2024,theCompanypurchasedRMB1.9504millionofagriculturalmaterialsinpairedassistanceareas.

SECTIONVI.SIGNIFICANTEVENTS

I.Implementationofcommitment

1.CommitmentsmadebytheCompany'sactualcontroller,shareholders,relatedparties,acquirersandtheCompanyandothercommittedpartieshavebeenfulfilledduringthereportingperiodandhavenotbeenfulfilledbytheendofthereportingperiod?Applicable□Non-applicable

Commitment

ShougangMiningCorporationjoinedinShougangCo.,ShougangGroupwillurgeShougangMiningCorporationtoconductnecessaryrelatedpartytransactionswithShougangCo.inaccordancewithfairandreasonablemarketprice,strictlyconformtotherequirementsoflawsandregulations,normativedocuments,thearticlesofassociationofShougangCo.andrelatedtransactionmanagementsystem,andperformthecorrespondingreview,approvalandinformationdisclosureproceduresforthenecessaryrelatedtransactionsbetweenShougangCo.andShougangMiningCorporation.

MiningCompanyintoShougangCo.,toreduceandstandardizerelatedpartytransactionswithShougangCo.InordertoreduceandstandardizetherelatedpartytransactionsafterThemainassetreplacementandrelatedpartytransactionsofShougangCo.andsafeguardthelegitimaterightsandinterestsofShougangCo.anditspublicshareholders,theCompanypromisestocontinuetofulfillthecontentsoftheoriginalcommitmentletterafterThemainassetreplacement,andfurtherpromisesasfollows:

1.TheCompanywillperformitsobligationsasthecontrollingshareholderofShougangCo.ingoodfaith,trytoavoidandreducetherelatedtransactionswithShougangCo.(includingtheenterprisesitcontrols);asfortherelatedtransactions,whichareunavoidableoroccurforreasonablereasonsbetweentheCompanyandotherenterprisesunderthecontroloftheCompany,andShougangCo.andtheenterprisesitcontrols,theCompanywillnotrequireoracceptthemorefavorableconditionsprovidedbyShougangCo.thantheconditionstoanindependentthirdpartyinanyfairmarkettransaction.TheCompanyandotherenterprisesunderthecontroloftheCompanywillsignastandardizedrelatedpartytransactionagreementwithShougangCo.inaccordancewiththelaw,followthemarketprinciplesofopenness,fairnessandjustice,inaccordancewithfairandreasonablemarketprice,conformtorelevantprovisionsoflaws,regulationsandnormativedocumentsinthedecision-makingproceduresofrelatedtransactionsanddiscloseinformationinaccordancewiththelaw.

2.TheCompanyandotherenterprisescontrolledbytheCompanywillnotobtainanyimproperbenefitsormakeShougangCo.bearanyimproperobligationsthroughrelatedpartytransactionswithShougangCo.ortheenterprisescontrolledbyShougangCo.

3.TheCompanywillbeliable

forthelossestoShougangCo.andtheenterprisecontrolledbyShougangCo.duetotherelatedpartytransactionswiththeminviolationoftheabovecommitments.

opinionsoftherelevantsecuritiesregulatoryauthority.

2.ConcerningassetsorprojectoftheCompany,whichhasprofitforecast,andreportingperiodstillinforecastingperiod,explainreasonsofreachingtheoriginalprofitforecast

□Applicable√Non-applicableII.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty

□Applicable√Non-applicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyduringthereportingperiod.

III.Externalguaranteesagainsttherulesandregulations

□Applicable√Non-applicable

NoexternalguaranteeprovidedbytheCompanywhichagainsttherulesandregulationsduringthereportingperiod.

IV.Explanationfromboardofdirectorsonthelatestmodifiedauditor’sreport

□Applicable√Non-applicableV.Explanationfromboardofdirectors,supervisorycommitteeandindependentdirectors(ifapplicable)onthecurrentauditreportwithmodifiedopinion

□Applicable√Non-applicable

VI.Changesinaccountingpolicies,accountingestimatesorcorrectionofmajoraccountingerrorsascomparedtothefinancialreportfortheprioryear

□Applicable√Non-applicableNochangesinaccountingpolicies,accountingestimatesorcorrectionofmajoraccountingerrorsduringtheCompany’sreportingperiod.VII.Explanationonthechangeinthescopeofconsolidatedfinancialstatementsduringthereportingperiodascomparedtofinancialreportofthepreviousyear

NochangeinthescopeofconsolidatedfinancialstatementsduringthereportingperiodduringtheCompany’sreportingperiod.

VIII.Appointmentandnon-reappointment(dismissal)ofCPACurrentaccountingfirm

Nameofdomesticaccountingfirm

Whetherchangedtheaccountingfirmincurrentyear

√YES□NO

Whetherchangedtheaccountingfirmduringtheaudit

□YES√NOWhethertheapprovalproceduresforthechangeofaccountingfirmshavebeenfulfilled

√YES□NODetailedexplanationofthereappointmentandchangeofaccountingfirms

InaccordancewiththerelevantprovisionsandregulatoryrequirementsoftheMeasuresfortheManagementofSelectionandEmploymentofAccountingFirmsbyState-ownedEnterprisesandListedCompanies(Caikuai[2023]No.4)issuedbytheMinistryofFinance,theState-ownedAssetsSupervisionandAdministrationCommitteeoftheStateCouncilandtheSecuritiesRegulatoryCommittee,ZhitongAccountingFirm(SpecialGeneralPartnership)isunabletocontinuetoprovideauditingservicesfortheCompanyasithasbeenprovidingauditingservicestotheCompanyformanyconsecutiveyears.Approvedbytheshareholders'generalmeetingoftheCompany,theCompanyappointedShineWingCertifiedPublicAccountants(LLP)astheauditfirmoftheCompany'sfinancialreportandinternalcontrolfortheyear2024foraperiodofoneyear.

Appointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor?Applicable□Non-applicable

TheCompanyhasengagedShineWingCertifiedPublicAccountants(LLP)astheCompany'sinternalcontrolauditfirm.IX.Suspensionandterminationoflistingafterdisclosureofannualreport

□Applicable√Non-applicableX.Insolvencyorrestructuringrelatedmatters

□Applicable√Non-applicable

NoinsolvencyorrestructuringrelatedmattersduringthereportingperiodXI.Materiallitigationorarbitrationcases

□Applicable√Non-applicableNomateriallitigationorarbitrationcasesduringthereportingperiod.XII.Punishmentorrectification

□Applicable√Non-applicableNopunishmentorrectificationduringthereportingperiod.XIII.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollersduringthereportingperiod

□Applicable√Non-applicable

XIV.Materialrelatedpartytransactions

1.Relatedtransactionwithroutineoperationconcerned

?Applicable□Non-applicable

Relatedparties

2.Relatedpartytransactionsbyassetsorequityacquisitionanddisposal

□Applicable√Non-applicableNorelatedpartytransactionsbyassetsorequityacquisitionanddisposalduringthereportingperiod.

3.Relatedtransactionsofjointexternalinvestment

□Applicable√Non-applicableNorelatedpartytransactionsinrespectofjointexternalinvestmentduringthereportingperiod.

4.Relatedcreditor'srightsanddebts?Applicable□Non-applicableWhethertheCompanyhadnon-operatingcontactofrelatedcreditanddebt

□YES√NONorelatedcreditor'srightsanddebtsinthereportingperiod

5.Transactionswithrelatedfinancialcompanies

?Applicable□Non-applicableDeposit

Relatedparty

Loan

Creditgrantingorotherfinancialservices

6.TransactionsbetweenfinancialcompaniescontrolledbytheCompanyandrelatedparties

□Applicable√Non-applicable

TheCompanyhasnocontrollingfinancecompanies.

7.Othersignificantrelatedpartytransactions

□Applicable√Non-applicableNoothersignificantrelatedpartytransactionoftheCompanyduringthereportingperiod.

XV.Materialcontractsandimplementation

1.Entrustment,contractandleasing

(1)Entrustment

□Applicable√Non-applicableNoentrustmentduringthereportingperiod.

(2)Contract

□Applicable√Non-applicableNocontractduringthereportingperiod.

(3)Leasing

□Applicable√Non-applicableNoleasingduringthereportingperiod.

2.Materialguarantees

?Applicable□Non-applicable

Unit：RMB0,000

ExternalguaranteesoftheCompanyanditssubsidiaries(excludingguaranteestosubsidiaries)

Co.,Ltd.

3.Entrustedcashassetmanagement

(1)Entrustedwealthmanagement

□Applicable√Non-applicableNoentrustedwealthmanagementduringthereportingperiod.

(2)Entrustedloans

□Applicable√Non-applicableNoentrustedloansduringthereportingperiod.

4.Othermaterialcontracts

□Applicable√Non-applicableNoothermaterialcontractsduringthereportingperiod.

XVI.Explanationofothersignificantmatters

□Applicable√Non-applicableNoothersignificantmattersneedtobeexplainedduringthereportingperiod.

XVII.SignificantmattersofsubsidiariesoftheCompany

?Applicable□Non-applicableOn22March2024,ShougangZhixinQian'anElectromagneticMaterialsCo.,Ltd.heldthefoundingmeetingoftheshareholdingreform.TheCompany'sregisteredcapitalwaschangedtoRMB3,000.00millionbydiscountingtheshareswiththeauditednetbookassetsonthebasedateoftheshareholdingreform.On27March2024,ZhixinCo.completedtheregistrationofbusinesschangeforshareholdingreformandofficiallychangeditsnametoShougangZhixinElectromagneticMaterials(Qian'an)Co.,Ltd.Afterthecompletionofthe

shareholdingreform,theshareholdingratioofeachshareholderofZhixinCo.remainsunchanged,andShougangCo.isstillitscontrollingshareholder.

SECTIONVII.MOVEMENTSINSHARECAPITALANDSHAREHOLDERS

I.Sharemovement

1.Sharemovement

Unit:share

Beforechange

Reasonsforsharesmovements?Applicable□Non-applicable

AccordingtotheIncentivePlan,withtheapprovalofthecompany'sshareholdersmeeting,thecompanyhasrepurchasedandcancelled20,630,585restrictedsharesduringthereportingperiod,andthesharecapitalofthecompanyhasbeenreducedfrom7,794,611,605sharesto7,773,981,020shares.

Approvalofsharemovements?Applicable□Non-applicable

Duringthereportingperiod,therepurchaseandcancellationofrestrictedsharesbytheCompanyhasbeenconsideredandapprovedbytheannualgeneralmeetingof2023on28June2024.Transferofsharesarisingfromchangesinshareholding?Applicable□Non-applicable

Therestrictedsharesrepurchasedbythecompanyhavebeencancelledinaccordancewithregulations.InfluencesofsharesmovementsonbasicEPS,dilutedEPS,netassetspershareattributabletocommonshareholdersofthecompanyandotherfinancialindicatorsforboththelatestyearandthelatestperiod

□Applicable?Non-applicable

OtherinformationnecessarytodisclosefortheCompanyorneedstobedisclosedunderrequirementsfromsecurityregulators

□Applicable√Non-applicable

2.Movementsofrestrictedshares

?Applicable□Non-applicable

Unit:share

Nameofshareholders

II.Securitiesissuanceandlisting

1.Securityoffering(withoutpreferredstock)inreportingperiod

□Applicable√Non-applicable

2.Changesintotalsharesandshareholdersstructureaswellasanexplanationofchangesinassetsandliabilitystructure?Applicable□Non-applicable

AccordingtotheIncentivePlan,withtheapprovalofthecompany'sshareholdersmeeting,atotalof20,630,585sharesofrestrictedstockhavebeenrepurchasedandcancelledbythecompanyduringthe

reportingperiod.TherehasbeenachangeinshareholderstructureandadecreaseinthetotalnumberofsharesoftheCompany.ThereisnoimpactontheassetandliabilitystructureoftheCompany.

3.Currentinternalstaffshares

□Applicable√Non-applicable

III.Shareholdersandtheactualcontroller

1.Amountofshareholdersandshareholding

Unit:share

Totalcommonstockshareholdersinreportingperiod-end

Relatedoracting-in-concertpartiesamongtheshareholdersabove

Shareholdersholdingmorethan5%ofshares,top10shareholdersandtop10shareholderswithunrestrictedsharesincirculationparticipatinginthelendingofsharesinthetransferandfinancingbusiness?Applicable□Non-applicable

Unit:share

IndexSecuritiesInvestmentFund

Top10shareholdersandtop10shareholderswithunrestrictedsharesoutstandingchangefromthepreviousperiodduetolending/returningoftransferandfinance

□Applicable√Non-applicableWhetherthetoptencommonstockshareholdersortoptencommonstockshareholderswithunrestrictedshareshaveabuy-backagreementdealingduringthereportingperiod

□YES√NO

ThetoptencommonstockshareholdersortoptencommonstockshareholderswithunrestrictedsharesoftheCompanyhavenobuy-backagreementdealingduringthereportingperiod.

2.Controllingshareholders

Natureofcontrollingshareholders:localstate-ownedholdingTypeofcontrollingshareholders:legalperson

IndexSecuritiesInvestmentFund

Nameofcontrolling

shareholders

Controllingshareholderturnoverduringthereportingperiod

□Applicable√Non-applicableTherewerenochangesincontrollingshareholdersduringthereportingperiod.

3.ActualcontrolleroftheCompanyandpersonsactinginconcert

Natureofactualcontroller:localmanagementagencyofstate-ownedassetsTypeofactualcontroller:

Actualcontrollerturnoverduringthereportingperiod

□Applicable√Non-applicableTheactualcontrollerofthecompanywasnotchangedduringthereportingperiod.BlockdiagramofpropertyrightsandcontrollingrelationsbetweentheCompanyandactualcontrollersisasfollows:

Actualcontrollercontrollingthecompanythroughtrustorotherassetmanagementmethods

□Applicable√Non-applicable

4.ThenumberofsharespledgedbythecontrollingshareholderorthelargestshareholderoftheCompanyandpersonsactinginconcertwithitreaches80%ofthenumberofsharesheldbytheminaggregate

□Applicable√Non-applicable

5.Otherlegalpersonshareholderswithover10%sharesheld

?Applicable□Non-applicable

Nameoflegalpersonshareholders

Non-residentialrealestateleasing;Taxservices;Humanresourcesservices(excludingoccupationalintermediaryactivitiesandlabordispatchservices);Registrationandagencyofmarketentities;Businessagencyservices;Undertakeoutsourcingofarchivalservices;Tenderingandbiddingagencyservices;Bigdataservices;Enterprisemanagementconsulting.(Exceptforprojectsthatrequireapprovalaccordingtolaw,businessactivitiesshallbeconductedindependentlybasedonthebusinesslicenseinaccordancewiththelaw)

6.Limitationonreducingtheholdingsofsharesofcontrollingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects

□Applicable√Non-applicable

IV.Theimplementationofsharerepurchaseduringthereportingperiod

Progressofsharerepurchase

□Applicable√Non-applicableImplementationprogressofreducingandrepurchasingsharesthroughcentralizedbidding

□Applicable√Non-applicable

SECTIONVIII.PREFERREDSHARES

□Applicable√Non-applicable

SECTIONIX.BONDS?Applicable□Non-applicableI.Enterprisebonds

□Applicable√Non-applicable

TheCompanydidnothaveanyenterprisebondsduringthereportingperiod.

II.Corporatebonds

□Applicable√Non-applicableTheCompanydidnothaveanycorporatebondsduringthereportingperiod.

III.Debtfinancinginstrumentsfornon-financialcorporations?Applicable□Non-applicable

1.Informationondebtfinancinginstrumentsfornon-financialcorporations

Unit：RMB0,000

Bondsoverdue

□Applicable√Non-applicable

2.Triggeringandenforcementofissuerorinvestoroptionclausesandinvestorprotectionclauses

□Applicable√Non-applicable

3.Situationofintermediaries

FinancingNote(KechuangNote)

FinancingNote

Whethertherewereanychangesintheaboveorganizationsduringthereportingperiod

□YES√NO

4.Useofraisedfunds

Unit：RMB0,000

Fundsraisedforconstructionprojects

□Applicable√Non-applicable

ChangesintheuseoffundsraisedfromtheabovebondsbytheCompanyduringthereportingperiod

□Applicable√Non-applicable

5.Adjustmentstocreditratingresultsduringthereportingperiod

□Applicable√Non-applicable

6.Implementation,changesandimpactontheinterestsofbondinvestorsofguarantees,repaymentplansandotherrepaymentsecuritymeasuresduringthereportingperiod

□Applicable√Non-applicable

IV.Convertiblecorporatebonds

□Applicable√Non-applicableTheCompanydidnothaveanyconvertiblecorporatebondsduringthereportingperiod.V.Lossinthescopeoftheconsolidatedstatementofincomeforthereportingperiodexceeding10%ofthenetassetsattheendofthepreviousyear

□Applicable√Non-applicableVI.Overdueinterest-bearingdebtsotherthanbondsattheendofthereportingperiod

□Applicable√Non-applicableVII.Anyviolationofrulesandregulationsduringthereportingperiod

□YES√NO

VIII.MajoraccountingdataandfinancialindicatorsoftheCompanyforthepasttwoyearsasattheendofthereportingperiod

Unit：RMB0,000

Item

SECTIONX.FINANCIALREPORTI.Auditor’sreport

MainBodyofAuditor’sReport

XYZH/2025BJAA16B0514TotheShareholdersofBeijingShougangCompanyLimited:

1.OpinionWehaveauditedthefinancialstatementsofBeijingShougangCompanyLimited(theCompany),whicharecomprisedoftheconsolidatedandparentcompanystatementsoffinancialpositionasof31December2024,andtheconsolidatedandparentcompanyincomestatements,statementsofchangesinequity,andstatementsofcashflowsfortheyearthenended,andnotestothefinancialstatements.

Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandparentcompany’sfinancialpositionoftheCompanyasof31December2024,andtheconsolidatedandparentcompany’sfinancialperformance,andcashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises.

2.BasisforOpinion

WeconductedourauditinaccordancewithChinaStandardsonAuditing.Ourresponsibilitiesunderthosestandardsarefurtherdescribedinthe“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”sectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsforChineseCertifiedPublicAccountants,andwefulfilledourotherethicalresponsibilities.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

3.KeyAuditMatters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.

1.RecognitionofRevenue

theAccountingStandardsforBusinessEnterprises.

(5)Selectingcustomersamplestoperformtheconfirmationproceduresonsalesrevenueofthereportingperiodinconjunctionwithnotesreceivable,accountsreceivable,financingreceivables,contractliabilities,etc.

(6)Checkingtheappropriatenessofdisclosuresinrelationtorevenueinthefinancialreport.

4.OtherInformationThemanagementoftheCompany(themanagement)isresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheAnnualReportof2024,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.

Basedontheworkwehaveperformed,ifweconcludethatthereisamaterialmisstatementofotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.

5.ResponsibilitiesoftheManagementandThoseChargedwithGovernancefortheFinancialStatements

ThemanagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithAccountingStandardsforBusinessEnterprises,anddesigning,implementing,andmaintaininginternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.

Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’s

abilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.

ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.

6.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatements,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithChinaStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandaregenerallyconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithChinaStandardsonAuditing,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

(1)Identifyandassesstherisksofmaterialmisstatementsofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.

(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.

(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,furthereventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

(5)Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

(6)Obtainsufficient,appropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervision,andperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependenceandtocommunicatewiththemallrelationships

andothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards(ifany).

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlessthelaworregulationprecludespublicdisclosureaboutthemattersorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

ShineWingCertifiedPublicAccountants(LLP)

ChineseCertifiedPublicAccountant:LuMin

ChineseCertifiedPublicAccountant:LuMinBeijing,China

II.Financialstatements

1.ConsolidatedStatementofFinancialPositionPreparedby:BeijingShougangCompanyLimited

Unit:RMBYuan

Long-termequityinvestments

Othernon-currentliabilities

LegalRepresentative:QiuYinfuChiefAccountant:LiuTongheAccountingOfficer:CuiXiumei

2.ParentCompanyStatementofFinancialPosition

Unit:RMBYuan

Including:Dataresources

3.ConsolidatedIncomeStatement

Unit:RMBYuan

I.Totaloperatingrevenue

(5)Others

LegalRepresentative:QiuYinfuChiefAccountant:LiuTongheAccountingOfficer:CuiXiumei

4.ParentCompanyIncomeStatement

Unit:RMBYuan

profitorloss

5.ConsolidatedStatementofCashFlows

Unit:RMBYuan

Cashreceivedfromdisposalofinvestments

6.ParentCompanyStatementofCashFlows

Unit:RMBYuan

Cashreceivedrelatingtootherinvestingactivities

7.ConsolidatedStatementofChangesinEquity

Currentperiodamount

Unit:RMBYuan

orrectionsofpriorperioderrors

alcontributionsofotherequityinstrumentholders

ers(shareholders)

ngs

Priorperiodamount

Unit:RMBYuan

theendofpreviousyear

andreduction

reserve

(4)Changesindefinedbenefitplanstransferredtoretainedearnings

8.ParentCompanyStatementofChangesinEquity

Currentperiodamount

Unit:RMBYuan

Item

andreduction